May 14 (Reuters) - Gold prices fell on Wednesday as easing U.S.-China trade tensions soothed fears of a potential global recession, boosting investors' appetite for risk and weighing on bullion's safe-haven appeal.
Spot gold fell 0.5% to $3,231.08 an ounce, as of 1144 GMT. Prices scaled a record high of $3,500.05 last month amid elevated trade war fears.
U.S. gold futures eased 0.4% to $3,234.70.
The U.S. and China agreed to a 90-day suspension of reciprocal tariffs following discussions in Geneva over the weekend, with the U.S. planning to reduce the "de minimis" tariff for low-value shipments from China to 30%, according to a White House executive order and industry experts.
"After the tariff truce announced over the weekend, we've seen stock markets surge higher, and at least in the short term, this has removed some of the safe haven focus that has helped propel gold to record highs in recent months," said Ole Hansen, head of commodity strategy at Saxo Bank.
"There's a risk of further downside if we take out that $3,200 level, then we could fairly quickly test $3,165."
Global shares have rallied amid easing Sino-U.S. trade war concerns, while also taking support from relatively benign U.S. inflation data.
Traders await U.S. producer price index data, due on Thursday, for cues on the Federal Reserve's interest rate trajectory after cooler-than-expected April consumer price index data fuelled speculation of possible rate cuts later this year.
The market is expecting 53 basis points of rate cuts by the Federal Reserve this year, starting in September.
While gold is traditionally viewed as a hedge against inflation, it also tends to thrive in a low-interest rate environment which reduces the opportunity cost of holding gold.
Spot silver was flat at $32.9 an ounce, platinum rose 0.7% to $994.78 while palladium was steady at$956.65.
Reporting by Anmol Choubey in Bengaluru, additional reporting by Ishaan Arora; Editing by Eileen Soreng, Elaine Hardcastle and Louise Heavens
