* Oil prices climb over 5%

* US, Israel trade airstrikes with Iran

* US dollar, 10-year Treasury yields rise

* US Consumer Price Index data due later in the day

(Updates prices for EMEA mid-session trading)

By Ishaan Arora

March 11 (Reuters) - Gold was largely steady on

Wednesday, as higher oil prices fueled worries of a spike in

inflation and tempered hopes of rate cuts, while safe-haven

demand amid the ongoing U.S.-Israeli war on Iran limited losses.

Spot gold ticked down 0.1% at $5,183.82 per ounce, as

of 1132 GMT. U.S. gold futures for April delivery fell

1% to $5,191.60.

"After yesterday's fall, oil is rebounding today, confirming

that tensions are not yet over. In the last few days, gold

prices have not moved significantly, holding well above $5,000,"

said Swissquote analyst Carlo Alberto De Casa, adding that a

rise in the dollar and benchmark 10-year U.S. Treasury yields

was also pressuring bullion.

A stronger dollar raises the cost of gold for overseas

buyers, while higher Treasury yields reduce the appeal of

non-yielding bullion.

Oil prices rebounded as markets doubted whether the

International Energy Agency's reported plan for a record release

of oil reserves could offset potential supply shocks from the

Middle East conflict.

The U.S. and Israel traded air strikes with Iran as the war

entered its second week, effectively shutting the Strait of

Hormuz, a chokepoint for a fifth of global oil and liquefied

natural gas.

"It seems likely to me that investors are now increasing

their exposure to the precious metal as a safe-haven asset," De

Casa added.

Markets now await the U.S. consumer price index for

February, due later in the day, and the Personal Consumption

Expenditures index, the Federal Reserve's preferred inflation

gauge, on Friday.

Consumer prices likely picked up in February as the cost of

gasoline increased. With the conflict driving up oil prices, a

further rise in inflation is expected in March.

Investors expect the Fed to keep rates steady at the end of

its two-day meeting on March 18. Despite being viewed

as an inflation hedge, gold loses some appeal when interest

rates rise.

Meanwhile, spot silver fell 2% to $86.60 per ounce,

spot platinum lost 1% to $2,179.64, and palladium

eased 1.1% to $1,637.40.