PRECIOUS-Gold steady on caution over Middle East conflict; Trump says war could end soon

March 10 (Reuters) - Gold prices held largely steady on Tuesday as investors stayed on the sidelines, cautious about Middle East tensions, after U.S. President Donald Trump reportedly said he thinks his war against Iran "is very complete".

FUNDAMENTALS

Spot gold XAU= eased 0.1% to $5,131.24 per ounce, as of 0051 GMT. U.S. gold futures GCcv1 for April delivery rose 0.7% to $5,141.40.

The dollar fell 0.4%, making greenback-priced bullion cheaper for holders of other currencies. USD/

Trump on Monday predicted a quick end to the war - ahead of the initial four-week time frame he had laid out - even as Iran's hardliners rallied behind new Supreme Leader, Mojtaba Khamenei, signalling no willingness to back down any time soon.

The war has effectively shut the Strait of Hormuz, a chokepoint for a fifth of global oil and liquefied natural gas, stranding tankers for over a week and forcing producers to halt output as storage fills, driving energy prices soaring.

Higher energy costs fuelled inflation concerns and further dimmed the prospects for a near-term cut in interest rates by the U.S. Federal Reserve.

Gold is seen as an inflation hedge, but low rates boost its appeal as a zero-yield asset.

Markets are now awaiting the U.S. consumer price index for February, due on Wednesday, and Personal Consumption Expenditures (PCE) index - the Fed's preferred inflation gauge - on Friday.

Spot silver XAG= rose 0.4% to $87.32 per ounce. Spot platinum XPT= fell 0.6% to $2,168.52 and palladium XPD= eased 0.1% to $1,689.11.