To update prices and add quotes

July 16 (Reuters) - Gold prices rose on Wednesday , supported by a slight decline in the dollar and U.S. Treasury yields, as investors assessed data showing a rise in U.S. consumer prices last month and awaited more clarity on U.S. President Donald Trump's trade policy.

By 0644 GMT, spot gold was up 0.5 percent at $ 3,339.88 per ounce, while U.S. gold futures were up 0.3 percent at $ 3,346.70 .

The dollar index retreated from a one-month high, increasing gold's appeal to holders of other currencies. Benchmark 10-year US Treasury yields also retreated from multi-week highs.

" Many countries are still negotiating with the US over tariffs. There is still a lot of uncertainty in the market, and many are looking for safe-haven assets," said Brian Lan, managing director at GoldSilver Central in Singapore.

On Saturday, Trump threatened to impose 30 percent tariffs on imports from Mexico and the European Union starting August 1. However, on Monday, Trump said he was open to further negotiations.

US consumer prices rose at their fastest rate in five months in June amid higher costs for some goods, suggesting that tariffs are starting to weigh on inflation and may prompt the Federal Reserve to keep interest rates unchanged until September.

Following the release of these data, Trump said that consumer prices were low and that the Federal Reserve should cut interest rates now.

Dallas Federal Reserve President Lori Logan said the Fed will likely have to hold interest rates at their current levels for a longer period to ensure inflation remains low, in the face of upward pressure from the Trump administration's tariffs.

Gold, often considered a safe haven during times of economic uncertainty, tends to thrive in a low interest rate environment.

Market focus now turns to US Producer Price Index data due at 12:30 GMT on Wednesday for further clues.

Among other precious metals, spot silver rose 0.5 percent to $ 37.88 per ounce, platinum rose 0.3 percent to $ 1,376.75 , and palladium fell 0.1 percent to $ 1,204.97 .

(Prepared by Rehab Alaa and Mariam Hassan for the Arabic newsletter)