PRECIOUS-Gold extends decline as inflation woes weigh on rate cut bets

(Updates for US morning hours)

* US producer prices post biggest gain in four years in April

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

* Spot platinum eases after hitting its highest since March 17

By Ashitha Shivaprasad

May 13 (Reuters) - Gold prices slipped for a second consecutive session on Wednesday as war-led inflation concerns weighed on expectations for interest rate cuts, with markets also watching the upcoming Trump-Xi meeting.

Spot gold was down 0.6% to $4,686.99 per ounce at 09:05 a.m. EDT (1305 GMT). U.S. gold futures gained 0.2% to $4,694.70.

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. Donald Trump embarks on the first visit by a U.S. president to China in nearly a decade 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 fell 0.2% to $86.70 per ounce, after hitting a two-month high earlier in the session.

Platinum lost 0.3% to $2,120.20, after hitting its highest level since March 17. Palladium was down 0.4% at $1,484.10. (Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Alexander Smith )