* 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 were steady on Thursday,

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

Trump and Chinese President Xi Jinping, and looked for signs of

progress in the Iran war.

Spot gold was steady at $4,689.49 per ounce, as of

0602 GMT. U.S. gold futures for June delivery fell 0.2%

at $4,696.40.

"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.

Trump heads into a series of meetings with Xi in Beijing,

aiming to secure economic wins, maintain a fragile trade truce

and navigate thorny issues such as the Middle East 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 0.9% to $87.19 per ounce, platinum

fell 0.2% to $2,133.35, and palladium was up 0.1%

at $1,501.25.