Updates for US morning trade

By Ishaan Arora

May 14 (Reuters) - Gold prices edged down on Thursday while investors focused on the latest developments in the Middle East war and signals from U.S. President Donald Trump's meeting with Chinese President Xi Jinping.

Spot gold XAU= was down 0.4% at $4,668.34 per ounce at 9:42 a.m. EDT (1342 GMT). U.S. gold futures GCcv1 for June delivery fell 0.7% to $4,672.70.

The U.S. dollar was up 0.1%, making greenback-priced metals more expensive for holders of other currencies. USD/

Oil prices dipped after Iran's state media said about 30 vessels had crossed the Strait of Hormuz in recent hours. Gold prices briefly gained after this report. 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.

Data released on Thursday showed U.S. retail sales increased further in April, but some of the rise in receipts was likely due to higher prices.

Meanwhile, Xi told Trump that trade talks were making progress at the start of a two-day summit on Thursday, but cautioned that disagreement over Taiwan could send relations down a dangerous path and even lead to conflict. The U.S. summary of the talks, however, made no mention of Taiwan.

Spot silver XAG= fell 3.8% to $84.62 per ounce, platinum XPT= fell 3.4% to $2,065.50, and palladium XPD= was down 3.7% at $1,443.74.