PRECIOUS-Gold eases as Trump backs off from threats to fire Fed Chair

April 23 (Reuters) - Gold prices declined on Wednesday after U.S. President Donald Trump backed off threats to fire the Federal Reserve chair and U.S. Treasury Secretary Scott Bessent hinted at easing trade tensions, denting the metal's safe-haven appeal.

FUNDAMENTALS

* Spot gold XAU= fell 1.2% to $3,340.92 an ounce by 0013 GMT. U.S. gold futures GCcv1 fell 2% to $3,349.20.

* On Tuesday, Trump backed off from threats to fire Federal Reserve Chair Jerome Powell after days of intensifying criticisms of the central bank chief for not cutting interest rates.

* The president also expressed optimism that a trade deal with China could "substantially" reduce tariffs.

* Meanwhile, Scott Bessent said he believes there will be a de-escalation in U.S.-China trade tensions, but negotiations with Beijing have not yet started and would be a "slog".

* Following this, the dollar regained some ground after hitting a three-year low, making gold more expensive for other currency holders. USD/

* Non-yielding gold, considered a hedge against global uncertainty and inflation and tends to thrive in a low-interest-rate environment, notched its 28th record high on Tuesday as it surged to the $3,500-per-ounce mark for the first time.

* Fed Bank of Minnesota President Neel Kashkari said it is too soon to know how short-term borrowing costs may need to be adjusted for Trump's tariffs and their expected impact on inflation and the economy.

* Meanwhile, JP Morgan sees gold prices crossing the $4,000-per-ounce milestone next year.

* Spot silver XAG= rose 0.2% to $32.58 an ounce, platinum XPT= eased 0.6% to $952.65 and palladium XPD= lost 0.4% to $931.91.

DATA/EVENTS (GMT)

0030 Japan JibunBK Mfg PMI Flash SA, Comp Op Flash SA, SVC PMI Flash SA Apr

0430 Japan Tertiary Ind Act NSA Feb

0715 France HCOB Mfg Flash PMI, Services Flash PMI, Composite Flash PMI Apr

0730 Germany HCOB Mfg Flash PMI, Services Flash PMI, Composite Flash PMI Apr

0800 EU HCOB Mfg Flash PMI, Services Flash PMI, Composite Flash PMI Apr

0830 UK Flash Composite PMI, Flash Manufacturing PMI, Flash Services PMI Apr

0900 EU Total Trade Balance SA Feb

1345 US S&P Global Mfg PMI Flash, Svcs PMI Flash, Comp PMI Flash Apr

1400 US New Home Sales-Units Mar