* US producer prices post biggest gain in four years in

April

* India raises gold and silver tariffs to 15% to curb

imports

* Spot platinum hits highest since March 12

(Updates prices)

By Ashitha Shivaprasad

May 13 (Reuters) - Gold prices slipped for a second

session on Wednesday as war-driven inflation concerns weighed on

expectations for interest rate cuts, with markets also watching

the upcoming meeting between U.S. President Donald Trump and

Chinese leader Xi Jinping.

Spot gold was down 0.6% at $4,686.35 per ounce at

1:59 p.m. EDT (1759 GMT). U.S. gold futures settled 0.4%

higher at $4,706.70.

U.S. producer prices increased more than expected in April,

posting their biggest gain since early 2022, the latest

indication that inflation was accelerating amid the Iran war.

"Inflation remains sticky and so the expectations for higher

rates for longer was reinforced, and that's been pressuring gold

the last two days," said Peter Grant, vice president and senior

metals strategist at Zaner Metals.

Gold is often viewed as a hedge against inflation, but

higher interest rates tend to pressure the non-yielding metal.

Data on Wednesday showed that U.S. consumer inflation

increased further in April, with the annual rate posting its

largest gain in three years.

The U.S. central bank last month left its benchmark

overnight interest rate in the 3.50% to 3.75% range. Traders

have largely priced out a U.S. rate cut this year, according to

CME Group's FedWatch.

Trump arrived in China eager to snag some deals, maintain a

fragile trade truce with the world's second-largest economy, and

prop up public approval ratings bruised by his war with Iran.

Meanwhile, India raised import tariffs on gold and silver to

15% from 6%, as part of efforts to curb overseas purchases of

the metals and ease pressure on the country's foreign exchange

reserves. India is the world's second-largest consumer of

precious metals.

The news about higher import duties in India has created

some demand concerns and could pose a long-term headwind, Grant

said.

Spot silver rose 1.6% to $87.88 per ounce, after

hitting its highest level in two months.

Platinum gained 1.6% to $2,159.58, after hitting its

highest level since March 12. Palladium was up 1.2% at

$1,508.39.