(Updates prices for European mid-session trade)

* Ceasefire in Middle East tested amid renewed U.S.-Iran

attacks

* Gold down over 13% since start of Iran war

* Investors eye upcoming U.S. jobs data

By Anjana Anil

May 5 (Reuters) - Gold prices rebounded on Tuesday,

after dropping to a five-week low in the previous session, as

oil prices eased, but persistent Middle East tensions and

inflation concerns kept gains in check.

Spot gold rose 0.8% to $4,557.75 per ounce by 1138

GMT, after touching its lowest level since March 31 on Monday.

U.S. gold futures for June delivery gained 0.8% to

$4,568.50.

Oil prices slipped a day after the U.S. launched an

operation aimed at reopening the Strait of Hormuz to shipping,

although exchanges of fire between the U.S. and Iran limited the

decline.

"A pullback in the oil price on profit-taking, despite

tensions being intensified in the Middle East, has given a lift

to gold from a five-week low, as fear seems to have become

normalised," said independent analyst Ross Norman.

The fragile ceasefire in the region appeared to be fraying once

more as the U.S. and Iran launched attacks, competing for

control of the Strait of Hormuz, amid conflicting reports about

ships passing through the strait in recent days.

Since the start of the U.S.-Israeli war on Iran in late

February, gold prices have been inversely proportional to crude.

Despite being a hedge against geopolitical volatility, soaring

energy costs have stoked fears of a spike in inflation and

lowered hopes of rate cuts, pushing gold down more than 13%.

Non-yielding bullion loses its appeal in high-interest-rate

environments as investors turn to assets that offer better

returns.

"Although gold's fundamentals point to good gains later this

year, the market is clearly in an extended consolidation phase

just now and through the physical market is attempting to

establish a price floor, especially after epic moves in Q1,"

Norman said.

Meanwhile, investors are also looking out for a slew of jobs

data, including job openings, the ADP employment report, and the

April payrolls report this week, which is likely to govern the

U.S. Federal Reserve's policy path.

Spot silver firmed 1.3% to $73.65 an ounce, platinum

gained 1.7% to $1,978.20, and palladium rose 1.8%

to $1,506.33.