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

* 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. (Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Alexander Smith, Alison Williams and Diti Pujara)