Updates for market close

By Ishaan Arora

May 14 (Reuters) - Gold edged lower on Thursday, pressured by rising oil prices and a firmer dollar after news of a vessel seizure and another sinking broke, even as investors look to U.S. President Donald Trump's meeting with Chinese President Xi Jinping in Beijing.

Spot gold XAU= was down 0.4% at $4,669.48 per ounce at 2:48 p.m. EDT (1848 GMT). U.S. gold futures GCcv1 for June delivery settled 0.4% lower at $4,685.30.

The U.S. dollar .DXY was up 0.3%, making greenback-priced bullion more expensive for holders of other currencies. USD/

Oil prices were up, as news broke of the sinking of an Indian cargo vessel and the seizure of another ship, off the coast of the United Arab Emirates, which was heading for Iranian waters. Prices were down earlier after Iran's state media said Chinese vessels had crossed the Strait of Hormuz. O/R

"What's transpired in the strait today is underpinning oil and continuing to stoke the higher-for-longer Fed rate expectations. Combine that with this week's hot inflation data and it's not surprising to see a firmer dollar, which is putting gold under some pressure today," said Peter Grant, vice president and senior metals strategist at Zaner Metals.

Prospects of U.S. rate cuts have largely faded, according to CME Group's FedWatch tool, amid a sharp energy-driven rise in April U.S. producer and consumer prices. FEDWATCH

"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. Energy product inventories and supply could become constrained leading to even higher energy costs and inflation, he added.

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

Meanwhile, Xi told Trump that trade talks were making progress on Thursday, but said disagreement over Taiwan could upend relations. 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.

Spot silver XAG= fell 4.1% to $84.36 per ounce, platinum XPT= lost 3.3% to $2,066.75, and palladium XPD= was down 3.5% at $1,447.73.