* TSX futures down 0.2%

* Oil rises, gold slips

May 11 (Reuters) - Futures for Canada's main stock index

edged lower on Monday as U.S. President Donald Trump's rejection

of Iran's response to a peace proposal left global markets

worrying that the 10-week-old conflict will drag on.

June futures on the S&P/TSX index were down 0.2% at

6:08 a.m. ET (1008 GMT).

* Days after the United States floated an offer in hopes of

reopening negotiations, Iran released a response on Sunday that

focused on ending the war on all fronts. Within hours, Trump

dismissed Iran's proposal in a post on Truth Social, saying "I

don't like it - TOTALLY UNACCEPTABLE."

* Oil prices rallied on supply fears after the news, with

the Strait of Hormuz remaining largely closed and global markets

staying tight.

* Spot gold fell 1.1% on elevated concerns that

inflation could keep interest rates higher for longer.

* The Toronto Stock Exchange's S&P/TSX Composite Index

rose to a near three-week high on Friday as investors

cheered recent growth in corporate earnings and after

weaker-than-expected domestic jobs data tempered for interest

rate hikes.

* On the earnings front, building materials distributor

Doman's first-quarter revenue missed analyst

expectations on Friday because of weak plywood demand.

* Gold miner Barrick Mining ( B ) on Monday beat Wall

Street estimates for first-quarter profit as higher gold prices

offset lower production.

FOR CANADIAN MARKETS NEWS, CLICK ON CODES:

TSX market report

Canadian dollar and bonds report

Reuters global stocks poll for Canada

Canadian markets directory

(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by

Joyjeet Das)