* TSX futures down 0.2%

* Oil and gold prices slip

June 5 (Reuters) - Futures tracking Canada's blue-chip

stocks edged lower on Friday as uncertainty over peace efforts

in the Middle East weighed, while investors awaited a key

payrolls report due later in the day.

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

6:54 a.m. ET (1054 GMT).

* Iran-backed Hezbollah militia rejected a new Lebanon

ceasefire on Thursday while Israel said it would not withdraw

troops, undermining U.S. President Donald Trump's efforts to

halt fighting there and forge peace with Tehran.

* Brent crude prices were at $95 a barrel and looked set to

end the week higher, as chances for a diplomatic resolution

between the U.S. and Iran looked slim.

* Spot gold and silver fell 0.1% and 1.3%,

respectively, on fears of higher inflation and elevated interest

rates.

* Canada's benchmark S&P/TSX Composite Index

reached a record high on Thursday, led by financial and metal

mining shares, as U.S. efforts for a Middle East peace deal

bolstered investor sentiment.

* The index was also on track for its third straight weekly

gain, despite volatility in commodities due to the war and

persistent fears of inflation and higher interest rates.

* Canadian employment data, due today at 8:30 a.m. ET, is

expected to show the economy adding 10,000 jobs last month and

the unemployment rate holding steady at 6.9%, its highest level

since October.

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)