(Updates prices and details throughout)

* TSX rises 0.9%

* Oil slips more than 3%, gold climbs

* Investors await Nvidia ( NVDA ) earnings

By Tharuniyaa Lakshmi

May 20 (Reuters) - Canada's main stock index edged

higher on Wednesday as progress in U.S.-Iran peace talks eased

inflation worries, while investors awaited the release of

chipmaker Nvidia's ( NVDA ) results - seen as a key test of AI demand -

later in the day.

At 10:37 a.m. ET, the Toronto Stock Exchange's S&P/TSX Composite

Index was up 0.9% at 34,067.18 points.

Geopolitical worries eased after President Donald Trump again

said on Tuesday that the Middle East war would be over "very

quickly", while Vice President JD Vance talked up progress in

negotiations for a peace deal.

Mining stocks on the resources-heavy index led

gains, up 1.6%, as gold prices climbed supported by falling U.S.

Treasury yields after the optimistic comments eased some

inflation concerns.

Ten out of 11 sectors in the TSX were in the green. The energy

sub-index fell 1.5%, tracking losses in oil prices,

which dropped more than 3%.

The index had come under pressure over the last two

sessions as a selloff in the bond markets driven by inflation

fears pushed yields higher.

On Wednesday, however, Canadian government 10-year bond

yields fell 3.1 basis points to 3.673%. The yield on

similar U.S. government benchmark debt fell to 4.6553%.

"It is still early to determine how much of the inflation

will prove transitory versus how much will actually end up

hitting the market. But all of this has investors very, very

concerned about the state of affairs right now," said Shiraz

Ahmed, founder at Sartorial Wealth.

Meanwhile, Nvidia ( NVDA ), among the centerpieces of the global

AI boom, rose 1.7% ahead of its quarterly results, which are due

after the bell.

"Markets are shrugging off both good and bad news and

continue to push higher. If Nvidia ( NVDA ) delivers in line with

expectations, it could trigger a temporary bump in the stock and

provide some support to broader sentiment," Ahmed said.