(Updates prices and details throughout)

* TSX down 0.07%

* Miners drag as gold prices slip

* Bank of Canada holds rates

By Tharuniyaa Lakshmi

June 10 (Reuters) - Canada's main stock index fell on

Wednesday after as renewed U.S.-Iran tensions cast doubts on

prospects for a deal to end the war, while Bank of Canada kept

interest rates unchanged as expected.

At 10:11 a.m. ET, the Toronto Stock Exchange's S&P/TSX

composite index was down 0.07% at 34,386.29 points.

* U.S. President Donald Trump said on Wednesday Iran had

taken too long to negotiate a deal and would now "have to pay

the price," while Tehran said it would reassess diplomatic

engagement with Washington after tit-for-tat strikes overnight.

* "This so-called ceasefire is not so 'ceasing', so that is

dampening risk appetite. This sort of sabre-rattling in Iran is

not helping," said Brian Madden, chief investment officer at

First Avenue Investment Counsel.

* The materials group, which includes metal

mining stocks, weighed the most on the index after gold prices

fell around 2% as concerns about interest rate hikes resurfaced.

* The Bank of Canada on Wednesday left its key interest rate

unchanged as widely expected and said it was seeing limited

evidence that higher energy prices were fueling broad-based

inflation.

* "The Bank of Canada's tone may matter more than the rate

decision itself. By keeping both cuts and hikes in play the Bank

is acknowledging that policymakers are operating with genuine

uncertainty... one bad inflation print and they hike. One bad

jobs report and they cut," said Michael Constantino, CEO of

Webull Canada.

* Five of the 10 TSX sectors traded higher, with energy

stocks helping limit losses, up 1.2%, as oil prices

rose after President Trump scolded Iran in a Truth Social post.

* Meanwhile, economists have cited the upcoming review of

the North American free trade agreement - the United

States-Mexico-Canada Agreement - as the biggest uncertainty

hanging over the Canadian economy.

* U.S. consumer prices increased 4.2% in the 12 months

through May, the largest gain since April 2023, data showed, as

the Middle East conflict raised the price of gasoline and other

energy products.

* Among others, Thomson Reuters ( TMSOF ) fell 1.3% as

the content and technology firm faces a shareholder vote at its

annual meeting over its U.S. government contracts for services

that some investors and employees say may help power the Trump

administration's crackdown on undocumented immigrants.