Updates prices as of 0511 GMT

By Pablo Sinha

June 3 (Reuters) - Gold slipped on Wednesday, as renewed hostilities in the Middle East pushed oil prices higher and stalled U.S.-Iran talks, while investors awaited upcoming U.S. economic data.

Spot gold XAU= fell 0.3% to $4,471.38 per ounce by 0511 GMT, after rising more than 1% in the previous session. U.S. gold futures GCcv1 for August delivery slipped 0.5% to $4,499.30.

"The market is now looking at the possibility that this ceasefire with Iran may not hold even though Trump is going to push for a peace deal resolution," said Kelvin Wong, a senior market analyst at OANDA.

"If we start to see further escalation, that could also dampen whatever recovery that gold might have had."

Gulf hostilities flared anew on Wednesday, with the U.S. military saying Iranian missile attacks on Bahrain, Kuwait and other regional targets were either thwarted or failed, as diplomacy between Washington and Tehran showed little progress.

U.S. Secretary of State Marco Rubio said on Tuesday that President Donald Trump's negotiating team has not offered Iran sanctions relief in exchange for reopening the Strait of Hormuz and insisted that any sanctions relief was tied to Tehran giving up its nuclear programme.

Oil prices rose more than 1% on Wednesday, deepening concerns over inflation and interest rate hikes. O/R

Although gold is typically viewed as a hedge against inflation, it tends to lose its appeal as a non-yielding asset when in a high interest-rate environment.

Cleveland Federal Reserve President Beth Hammack said on Tuesday the U.S. central bank may need to raise interest rates soon should already-high inflation pressures continue to mount.

Investors are now awaiting the U.S. nonfarm payroll data, due later in the day, and employment report due on Friday to gauge the Fed's monetary policy path.

Spot silver XAG= fell 0.4% to $74.82 per ounce, platinum XPT= lost 0.5% to $1,927.25, while palladium XPD= was steady at $1,369.64.