Updates prices, adds detail on India import announcement in paragraph 9

By Ishaan Arora

May 14 (Reuters) - Gold prices held steady on Thursday, as investors focused on the latest developments in the U.S.-Israel war on Iran and signals from the U.S. President's meeting with Chinese President Xi Jinping.

The U.S. dollar .DXY rose 0.2%, making greenback-priced bullion more expensive for those with other currency. USD/

Spot gold XAU= was little changed at $4,689.99 per ounce at 1043 a.m. EDT (1443 GMT). U.S. gold futures GCcv1 for June delivery fell 0.2% to $4,695.80.

Oil prices dipped after Iran's state media said about 30 vessels had crossed the Strait of Hormuz in recent hours while attacks on vessels were also reported near the strait. O/R

"There is risk of a significant downturn (in gold) if this Middle East conflict isn't resolved," said Bart Melek, global head of commodity strategy at TD Securities. Inventories and supply of energy products could be reduced to the point where prices rise sharply, leading to a rise in overall inflation, he added.

U.S. interest rate cuts have been largely priced out at any point this year, according to CME Group's FedWatch tool, due to a sharp energy-driven rise in U.S. producer and consumer prices in April. FEDWATCH

While gold is considered a hedge against inflation, higher interest rates tend to weigh on the non-yielding metal.

"Gold lacks firm direction as markets weigh lingering geopolitical uncertainty, the economic fallout from the Middle East conflict and hopes that the Trump-Xi meeting could help broker a resolution," Nikos Tzabouras, Senior Market Analyst at Tradu.com, said in a note.

Meanwhile, Xi told Trump that trade talks were making progress on Thursday, but said disagreement over Taiwan could send relations reeling, even leading to conflict. The U.S. summary of the talks, however, made no mention of Taiwan.

Elsewhere, the Indian government announced an import cap on gold at 100 kilograms, under its advance authorization scheme, which gives Indian exporters certain exemptions.

Spot silver XAG= fell 3.5% to $84.88 per ounce, platinum XPT= fell 3.4% to $2,065.05, and palladium XPD= was down 3.7% at $1,443.62.