(Recasts for Europe market open)

* Oil prices edge higher

* Tehran said it was reviewing Washington's latest

responses

* Gold has fallen more than 14% since the war began

By Anjana Anil

May 21 (Reuters) - Gold ticked lower on Thursday,

pressured by a stronger U.S. dollar and high Treasury yields,

while stagnant peace talks in the Middle East kept oil elevated,

inflation concerns alive, and reinforced bets of higher interest

rates.

Tehran said it was reviewing Washington's latest responses, and

President Donald Trump suggested he could wait a few days for

"the right answers" from Tehran but was also willing to resume

attacks on the country.

Spot gold was down 0.2% at $4,536.72 per ounce, as of

0912 GMT. On Wednesday, bullion rose more than 1% in U.S.

trading hours after having hit its lowest level since March 30.

U.S. gold futures for June delivery added 0.1% at

$4,537.90.

"No surprise that gold remains mired around the mid-$4k region,

as the U.S. dollar retains much of its gains since the Middle

East conflict began, while inflation woes are still palpable

across global financial markets," said Han Tan, chief market

analyst at Bybit, adding that the hawkish bias in the latest

FOMC minutesfurther limited gold's upside.

The yellow metal has fallen more than 14% since the war began in

late February, as energy-driven inflation woes forced it to

adopt an inverse relationship with oil prices. The benchmark

Brent crude was last at $104.4 a barrel.

"As long as the geopolitical equation remains uncertain,

gold bulls are likely to struggle to gather any upside momentum

of note, especially if rate hikes loom large."

The dollar's rise makes greenback-priced bullion expensive for

other currency holders, while the U.S. 10-year Treasury bond

yield resumed its climb, increasing the opportunity cost of

holding non-yielding bullion.

Despite being an inflation hedge, gold struggles in an

elevated interest rate environment.

Spot silver was down 0.5% at $75.60 per ounce,

platinum lost 0.4% to $1,943.25, and palladium

held steady at $1,369.48.