* 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 for U.S. mid-session trade)

By Ishaan Arora

May 14 (Reuters) - Gold prices held largely steady on

Thursday, as investors focused on the latest developments in the

Middle East and the U.S. President's meeting with Chinese

President Xi Jinping.

Spot gold was down 0.1% at $4,680.26 per ounce at

1:01 p.m. EDT (1701 GMT). U.S. gold futures for June

delivery fell 0.4% to $4,686.20.

The U.S. dollar was up 0.3%, making greenback-priced

bullion more expensive for holders of other currencies.

Oil prices slipped after Iran's state media said about 30

vessels had crossed the Strait of Hormuz even as there were

reports of attacks in the area.

"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.

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.

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

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,

which gives Indian exporters certain exemptions.

Spot silver fell 3.6% to $84.84 per ounce, platinum

lost 3.1% to $2,071.53, and palladium was down

3.5% at $1,447.52.