* Oil dips after Iran says 30 vessels crossed Strait of

Hormuz

* Trump, Xi discuss Middle East, trade, Taiwan

* India restricts gold imports under advance

authorization at 100 kilograms

(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 rose 0.2%, making greenback-priced

bullion more expensive for those with other currency.

Spot gold was little changed at $4,689.99 per ounce

at 1043 a.m. EDT (1443 GMT). U.S. gold futures 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.

"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.

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 fell 3.5% to $84.88 per ounce, platinum

fell 3.4% to $2,065.05, and palladium was down

3.7% at $1,443.62.