* US and Iran fight for control of Strait of Hormuz

* IMF chief warns of 'much worse outcome' if war drags

into 2027

* Series of US jobs data due this week

(Updates for U.S. morning hours)

By Ashitha Shivaprasad

May 5 (Reuters) - Gold prices rose on Tuesday after

hitting a more than one-month low in the previous session, as

investors assessed a fragile Middle East truce and the

conflict's potential impact on inflation and interest-rate

expectations.

Spot gold was up 1% to $4,566.79 per ounce at 8:45

a.m. EDT (1245 GMT), after touching its lowest level since March

31 on Monday.

U.S. gold futures gained 1% to $4,577.60.

"We are seeing some bargain hunting after the recent

selloff, and oil prices easing are also providing support. The

market is going to continue to watch the headlines, but we could

see focus shift a little towards economic data," said Jim

Wyckoff, market analyst at American Gold Exchange.

"Gold bulls need a significant fundamental spark to regain

their footing," he added.

A truce in the Middle East was under strain after the U.S.

and Iran exchanged fire in the Gulf as they wrestled for control

of the Strait of Hormuz. The narrow waterway, which carries a

large share of global oil, fertiliser and other commodity

supplies, has been virtually closed since attacks began on

February 28, driving up prices around the world.

Oil prices slipped on Tuesday, although exchanges of fire

limited losses. Elevated energy prices risk stoking inflation

and delaying central banks' easing cycles.

While gold is traditionally seen as a hedge against

inflation and uncertainty, its appeal tends to wane when

interest rates are high, as rising yields make non-yielding

assets less attractive.

Safe-haven demand remains, even if its influence has

weakened as gold is increasingly treated as a risk-sensitive

asset, said Fawad Razaqzada, market analyst at City Index.

"Nonetheless, the need to hedge against inflation, alongside

persistent central bank buying, has helped limit deeper downside

moves so far," Razaqzada said.

The head of the International Monetary Fund on Monday warned

the global economy could face a "much worse outcome" if the

Middle East war drags into 2027 and oil prices hit around $125

per barrel.

U.S. data due this week include job openings figures, the

ADP employment report, and the April payrolls report.

Spot silver firmed 1.1% to $73.53, platinum

gained 2% to $1,984.55, and palladium rose 2.4% to

$1,515.05.