Gold gains on softer dollar; US PPI data in focus

*US PPI data due at 1230 GMT

*Trump sets 19% tariff on Indonesia goods in latest deal

*Dollar down 0.1% against its peers

Gold gained on Wednesday on a softer dollar, while investors awaited more clarity on trade talks between the U.S. and its trading partners, with another inflation print due that could give further guidance on U.S. Federal Reserve's policy outlook.

Spot gold was up 0.6% at $3,341.29 per ounce, as of 0910 GMT. U.S. gold futures edged 0.3% higher to $3,348.20.

The U.S. dollar was down 0.1%, making gold cheaper for buyers holding other currencies.

"Currently the dollar is easing ahead of the U.S. PPI data as traders take a cautious position after the recent gains, which has given gold a gentle uplift," Ross Norman, an independent analyst, said.

On the data front, U.S. consumer prices increased by the most in five months in June amid higher costs for some goods, signalling rising inflation and possibly keeping the Fed's rate-cut plans on hold until September.

The spotlight is now on the U.S. producer price index (PPI) data, due at 1230 GMT.

On the trade front, President Donald Trump on Tuesday said the U.S. would impose a 19% tariff on goods from Indonesia under a new agreement with the Southeast Asian country and more deals were coming, while offering fresh details on planned duties on pharmaceuticals.

The deal with Indonesia is among the handful struck so far by the Trump administration ahead of an August 1 deadline when duties on most U.S. imports are due to rise again.

However, the gold market has rejected the $3,400 level mark multiple times despite Donald Trump's new tariff update, said Ajay Kedia, director at Mumbai-based Kedia Commodities.

Gold, traditionally seen as a hedge against economic and political uncertainties, thrives in a low-rate environment.

"In the short term, the gold price is likely to consolidate before staging another rally toward $3,600/oz by year end," ANZ said in a note.

Elsewhere, spot silver gained 0.8% to $38.01 per ounce. Platinum rose 0.4% to $1,377.85, while palladium fell 0.8% to $1,196.14.