Gold prices hit a one-month low on Thursday as investors awaited key US inflation figures for clues on the Federal Reserve's monetary policy path, while easing US-China trade tensions also weighed on bullion's appeal.

Spot gold fell 1.3% to $3,136.97 an ounce by 0536 GMT, after hitting its lowest since April 10 earlier in the session.

US gold futures fell 1.5% to $3,140.00.

The US and China agreed to drastically reduce tariffs and impose a 90-day pause, defusing a potentially damaging trade war between the world's two largest economies.

"The intraday outlook today is weak for the yellow metal as positive talks between the US and China have eroded its safe-haven appeal," said Jigar Trivedi, senior commodity analyst at Reliance Securities.

"The dollar index is trying to bounce back and if the US posts better retail sales and PPI data, the yellow metal could come under further pressure."

The spotlight now turns to US producer price index (PPI) data, due at 1230 GMT, following weaker-than-expected consumer data earlier this week.

Fed policymakers left interest rates unchanged as they try to assess how US President Donald Trump's tariffs and trade negotiations will affect prices and the economy. So far, concrete data has given them little to say.

Fed Chair Jerome Powell is also due to speak later in the day.

Markets are pricing in a 50 basis point rate cut this year, with the cut now seen starting in October instead of July. Gold, traditionally seen as a hedge against economic and political uncertainty, thrives in a low interest rate environment. Spot silver fell 1.5% to $31.74 an ounce and palladium fell 0.3% to $947.81, while platinum rose 0.4% to $979.64. (Newsmaker23)

Source: Reuters