(Reuters) - Gold prices edged lower on Tuesday as traders closely monitored U.S.-China talks, the outcome of which could simmer down trade tensions and boost the global economy, lessening demand for safe-haven assets, while a rising U.S. dollar added pressure.

Spot gold fell 0.2% to $3,320.58 an ounce as of 1323 a.m. EDT (1723 GMT) and U.S. gold futures shed 0.4% to $3,341.70.

The dollar index rose 0.2% against its rivals, making gold more expensive for other currency holders. USD/

"Over the last several sessions we've seen gold retrace a bit off the recent highs, mostly done on the back of optimism in regards to the expectations of negotiations between China and the U.S., UK and Russia," said David Meger, director of metals trading at High Ridge Futures.

U.S. Commerce Secretary Howard Lutnick said the talks with China were going well and expected to last all day as the two sides met for a second day in London, seeking a breakthrough on export controls that have threatened a fresh rupture between the superpowers. The talks follow a temporary truce in May that established a 90-day pause on new tariffs.

A trade deal could dampen gold's appeal as a safe-haven, since it tends to thrive amidst geopolitical and economic uncertainty as a store of value.

China's central bank added gold to its reserves in May for the seventh straight month, official data showed on Saturday. 

Investors are keenly awaiting U.S. Consumer Price Index data on Wednesday.

Spot silver was down 0.6% to $36.51 per ounce.

Platinum eased 0.6% to $1,212.84, after hitting its highest level since May 2021. Palladium lost 1.1% to $1,062.17. 

"The rally in platinum has been supported by a combination of supply concerns, speculative interest, and a broader uplift across the precious metals complex," said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany.

"Palladium is lagging primarily due to its narrower demand base and weaker investment appeal. Unlike platinum, palladium lacks a strong secondary demand narrative beyond auto catalysts."

(Reporting by Sarah Qureshi and Anushree Mukherjee in Bengaluru; Editing by Paul Simao and Shreya Biswas)

By Sarah Qureshi