PRECIOUS-Gold falls as easing Sino-US trade woes dulls safe-haven appeal

May 14(Reuters) - Gold prices edged lower on Wednesday as softening trade tension between the U.S. and China weakened safe-haven demand, while markets eyed another set of inflation data to assess the Federal Reserve's policy path.

FUNDAMENTALS

Spot gold XAU= fell 0.1% to $3,246.21 an ounce as of 0029 GMT. U.S. gold futures GCcv1 rose 0.1% to $3,250.50.

The U.S. will cut the "de minimis" tariff for low-value shipments from China to 30%, per a White House executive order and industry experts, further de-escalating a potentially damaging trade war between the world's two largest economies.

On Monday, U.S. President Donald Trump said he does not see tariffs on Chinese imports returning to 145% after the 90-day pause, adding that he believes Washington and Beijing will have a deal.

Meanwhile, the United States Department of Labour said the consumer price index increased 0.2% in April, while economists polled by Reuters expected a 0.3% rise after the 0.1% decline in March.

Traders are waiting for the Producer Price Index data, due on Thursday, for cues into the Fed's rate trajectory.

They are expecting 53 basis points of interest rate cuts this year from September. USDIRPR

Gold, traditionally seen as a hedge against inflation, thrives in a low-rate environment.

On Tuesday, Trump reiterated his call for the Fed to lower rates, saying prices for gas, groceries and "practically everything else" are down.

Spot silver XAG= eased 0.3% to $32.80 an ounce, platinum XPT= fell 0.1% to $987.55 and palladium XPD= lost 0.8% to $949.26.

DATA/EVENTS (GMT)

0600 Germany HICP Final YY Apr