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US inflation up 0.3% in June

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US NFP data due on Friday

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Silver at over three-week low

(Rewrites for US early morning-sesison)

By Sarah Qureshi and Noel John

July 31 (Reuters) - Gold prices rose 1% on Thursday as

traders turned to the safe haven asset amid ongoing tariff

uncertainty, as U.S. President Donald Trump's August 1 deadline

to end negotiations approaches.

Spot gold was up 1% at $3,308.07 per ounce, as of

0855 a.m. ET (12:55 GMT).

U.S. gold futures gained 0.3% to $3,306.10.

"We've seen an uptick in trade uncertainty as we approach

this August 1st deadline for tariffs... just a little bit of a

revival of the safe haven bid," said Peter Grant, vice president

and senior metals strategist at Zaner Metals.

"The midpoint of the broader range is sort of around

$3,312/oz and we tested that level today. I'd probably be a

little bit more optimistic if we're able to set new highs for

the week."

Trump on Wednesday issued a blitz of tariff announcements on

imports of copper and goods from Brazil and South Korea, ahead

of an August 1 deadline for higher U.S. tariff rates.

U.S. inflation increased in June as tariffs on imports

started raising the cost of some goods. The PCE index rose 0.3%

last month after an upwardly revised 0.2% gain in May.

Meanwhile, the U.S. central bank held interest rates steady

on Wednesday, and Fed Chair Jerome Powell's comments after the

decision undercut confidence that borrowing costs would begin to

fall in September.

Gold thrives in a low-interest rate environment as it is a

non-yielding asset.

Investors now await the U.S. non-farm payrolls data on

Friday for more clues on the Fed's rate path.

Spot silver fell 1.3% at $36.66 per ounce, its lowest

since July 7, platinum slipped 0.5% to $1,306.98, while

palladium gained about 0.9% to $1,215.79.

"It would not be surprising if strong selling pressure in

silver futures is partly due to sympathy selling amid the big

copper market meltdown seen the past two days," Jim Wyckoff, a

senior analyst at Kitco Metals said.

Trump surprised the market on Wednesday by saying the U.S.

would impose a 50% tariff on copper pipes and wiring, dragging

down U.S. copper prices more than 20% on the COMEX exchange

.