Gold Ticks Higher as Markets Trim Fed Rate-hike Expectations

March 26 (Reuters) - Gold prices edged higher on Thursday, extending gains to a third straight session, as investors awaited clarity on efforts to de-escalate the conflict in the Middle East, while trimming bets of a U.S. Federal Reserve rate hike this year.

FUNDAMENTALS

Spot gold XAU= rose 0.7% to $4,535.17 per ounce, as of 0111 GMT. U.S. gold futures GCcv1 for April delivery lost 0.5% to $4,532.20.

Iran is reviewing a U.S. proposal to end the war in the Gulf, but it has no intention of holding talks to end the widening Middle East conflict, the country's foreign minister said on Wednesday.

The U.S. has sent a 15-point ceasefire proposal to Iran earlier this week, reportedly delivered via Pakistan.

Global equity markets regained some ground, with investors hoping for an end to a war that has disrupted global energy supplies and risks fueling inflation. MKTS/GLOB

Since the start of the U.S.-Israel attacks on Iran, Tehran has attacked countries that host U.S. bases and effectively closed the Strait of Hormuz, a conduit for a fifth of the world's oil and liquefied natural gas.

Higher crude prices tend to fuel inflation by pushing up transport and manufacturing costs. Although rising inflation typically boosts gold's appeal as a hedge, high interest rates weigh on demand for the non-yielding asset.

Spot gold prices have fallen more than 14% since the U.S.-Israeli war on Iran started on February 28, pressured by a stronger dollar.

Spot silver XAG= rose 0.6% to $71.71 per ounce. Spot platinum XPT= gained 0.3% to $1,925.05 and palladium XPD= was up 0.1% at $1,424.55.