- US PPI data due at 1230 GMT
- Palladium market seen moving to balance, Johnson Matthey says
- Focus on Powell's speech later on Thursday
May 15 (Reuters) - Gold prices fell to their lowest in more than a month on Thursday, as easing trade tensions between the world's two largest economies dented demand and investors awaited U.S. economic data for further clarity on future interest rates.
Spot gold was down 0.8% to $3,154.16 an ounce as of 0838 GMT, after hitting its lowest since April 10 earlier in the session.
U.S. gold futures fell 1% to $3,157.30.
"The bears are running rampant just now on the basis that the market was clearly overbought," Ross Norman, an independent analyst, said.
The U.S. and China this week have agreed to reduce tariffs and implemented a 90-day pause, de-escalating a trade war and denting demand for gold as a safe haven.
Gold, used as a store of value during times of political and financial uncertainty, scaled an all-time high of $3,500.05 per ounce last month, boosted by central bank buying, fears linked to a global tariff war and strong investment demand.
On Thursday, the focus will turn to U.S. producer price index data, due at 1230 GMT, after softer-than-expected consumer data earlier this week.
Fed Chair Jerome Powell's speech later in the day will be watched for clues on the Fed's rate path.
Markets are expecting 50 basis points of rate cuts this year, with the reductions expected to start from October.
Non-yielding gold tends to thrive in a low-rate environment.
Elsewhere, spot silver fell 1% to $31.89 an ounce and palladium eased 0.2% to $949.07. Platinum was steady at $976.
The palladium market, which was in deficit in 2012-2024, will move into balance this year, with demand falling by 6% as a result of lower production of gasoline vehicles, a major industrial use of the metal, and increased recycling in China, Johnson Matthey said in a report.
Reporting by Brijesh Patel in Bengaluru; editing by Barbara Lewis
Source: Reuters