March 26 (Reuters) - Gold prices edged higher on Thursday, extending gains to a third straight session, as investors awaited clarity on efforts to de-escalate the conflict in the Middle East, while trimming bets of a U.S. Federal Reserve rate hike this year.<h3>FUNDAMENTALS</h3><ul><li>Spot gold (XAU=) rose 0.7% to $4,535.17 per ounce, as of 0111 GMT. U.S. gold futures (GCcv1) for April delivery lost 0.5% to $4,532.20. * Iran is reviewing a U.S. proposal to end the war in the Gulf, but it has no intention of holding talks to end the widening Middle East conflict, the country’s foreign minister said on Wednesday. * The U.S. has sent a 15-point ceasefire proposal to Iran earlier this week, reportedly delivered via Pakistan.</li><li>Global equity markets regained some ground, with investors hoping for an end to a war that has disrupted global energy supplies and risks fueling inflation. (MKTS/GLOB)</li><li>Since the start of the U.S.-Israel attacks on Iran, Tehran has attacked countries that host U.S. bases and effectively closed the Strait of Hormuz, a conduit for a fifth of the world’s oil and liquefied natural gas.</li><li>Higher crude prices tend to fuel inflation by pushing up transport and manufacturing costs. Although rising inflation typically boosts gold’s appeal as a hedge, high interest rates weigh on demand for the non-yielding asset.</li><li>The probability of a Fed rate hike by December has fallen to 18%, down from about 30% in the previous session, according to the CME Group’s FedWatch tool. Prior to the conflict, market expectations pointed to at least two rate cuts this year. (FEDWATCH)</li><li>Spot gold prices have fallen more than 14% since the U.S.-Israeli war on Iran started on February 28, pressured by a stronger dollar.</li><li>Spot silver (XAG=) rose 0.6% to $71.71 per ounce. Spot platinum (XPT=) gained 0.3% to $1,925.05 and palladium (XPD=) was up 0.1% at $1,424.55.</li></ul><h3>DATA/EVENTS (GMT)</h3>123 US Initial Jobless Clm 21 Mar, w/e0

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PRECIOUS-Gold ticks higher as markets trim Fed rate-hike expectations