PRECIOUS-Gold rises with US–China talks, MidEast conflict in focus

May 12 (Reuters) - Gold prices rose on Tuesday as investors awaited a meeting between U.S. President Donald Trump and Chinese President Xi Jinping while watching developments surrounding the conflict in the Middle East.

FUNDAMENTALS

Spot gold XAU= rose 0.5% to $4,757.59 per ounce by 0050 GMT.

U.S. gold futures GCcv1 for June delivery gained 0.8% to $4,768.20.

U.S. President Donald Trump said on Monday that a ceasefire with Iran was "on life support" after Tehran's response to a U.S. proposal to end the war made clear the two sides were still far apart on a number of issues.

Markets are also watching Trump's two-day visit to China this week, where he is set to meet Xi to discuss a wide variety of topics including the current conflict in the Middle East.

Oil prices rose in early Asian trade as negotiations to end the war between the United States and Iran appeared fragile, keeping supply concerns alive. O/R

Investors are looking out for the U.S. Consumer Price Index (CPI) data, due later in the day, to assess the Federal Reserve's interest rate path moving forward.

Freeport-McMoRan FCX.N said on Monday it still expects Indonesia's Grasberg copper and gold mine to resume full production by the end of 2027, reiterating a plan outlined last month and pushing back on reports that the restart could drag into 2028.

Spot silver XAG= rose 0.2% to $86.27 per ounce, platinum XPT= slid 0.2% to $2,127, and palladium XPD= was down 0.2% at $1,506.34.