* Trump to discuss Iran with Xi in U.S.-China summit

* U.S. Producer Price Index posts largest gain in four

years

* U.S. Senate approves Kevin Warsh as Fed chair

(Updates prices)

By Pablo Sinha

May 14 (Reuters) - Gold prices ticked up on Thursday, as

investors focused on talks between U.S. President Donald Trump

and his Chinese counterpart Xi Jinping, looking for signs of a

resolution to the Iran war.

Spot gold inched up 0.4% at $4,707.08 per ounce, as

of 0732 GMT. U.S. gold futures for June delivery rose

0.4% at $4,713.80.

Benchmark 10-year U.S. Treasury yields eased,

lowering the opportunity cost of holding gold.

"Gold seems to be consolidating at the moment as everybody

is looking at what's going to happen in the high-level talks

between the U.S. and China," said GoldSilver Central Managing

Director Brian Lan.

"(Gold) is a bit downward-biased and I think that is also a

window for investors who are looking to come into the metal,"

Lan added.

China's Xi Jinping told Trump that trade talks were making

progress at the start of a two-day summit on Thursday but warned

that disagreement over Taiwan could send relations down a

dangerous path and even lead to conflict.

Trump is expected to seek China's help to resolve the costly

and unpopular conflict, which he launched with Israel in late

February, but analysts say he is unlikely to get the support he

wants.

Data on Wednesday showed that U.S. producer prices posted

their biggest increase in four years in April, boosted by

soaring costs for goods and services, the latest sign of

accelerating inflation.

The U.S. Senate approved Kevin Warsh as chair of the Federal

Reserve as the U.S. central bank grapples with intensifying

inflation that may make it hard to push through the

interest-rate cuts that Trump has demanded.

Traders have largely priced out a Fed rate cut this year,

with markets now seeing a 28% chance of a hike by December,

according to CME Group's FedWatch tool.

While gold is considered a hedge against inflation, higher

interest rates tend to weigh on the non-yielding metal.

Meanwhile, gold discounts in India widened to a record of

more than $200 an ounce on Wednesday, as a surge in prices after

an import duty hike triggered investor selling in an already

weak demand environment, bullion dealers told Reuters.

Spot silver fell 0.7% to $87.33 per ounce, platinum

fell 0.5% to $2,126.90, and palladium was down

0.1% at $1,498.28.