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Gold prices edged up slightly on Thursday after a measure of U.S. consumer prices barely rose in May, bolstering expectations for Fed rate cuts this year.

Spot gold edged up 0.2 percent to $1,336.75 per ounce, while U.S. gold futures were up 0.3 percent at $1,340.25 an ounce.

The U.S. Federal Reserve next gathers on June 18 and 19 in Washington, but a rate cut looks more likely only in July or later. CME's FedWatch tool sees a 20 percent chance of a reduction next week.

Lower interest rates boost gold by reducing the opportunity cost of holding non-yielding bullion.

Investors also remain worried about the U.S.-China trade war. The G20 Summit, to be held in Osaka, Japan on June 28-29, brings together leaders from the world's developed and developing countries.

Investors wait to see if a failure by Chinese President Xi to come to the summit would lead to tariffs kicking in on a further $300 billion in Chinese imports.

U.S. President Donald Trump said earlier this week that additional tariffs on China will go into effect if Chinese President Xi Jinping doesn't meet with him at the Group of 20 summit.