PRECIOUS-Gold steady as Iran tensions counter hawkish Fed outlook

* Iran launches fresh attacks on UAE

* Several allies decline US call to escort shipping in Hormuz

* Fed expected to hold rates steady in policy meeting this week (Recasts paragraph 1, updates prices for EMEA mid-session trading)

By Pablo Sinha

March 17 (Reuters) - Gold prices held steady on Tuesday, as demand for the safe haven rose on geopolitical jitters stemming from the Iran war, while investor caution ahead of the U.S. Federal Reserve's monetary policy decision kept prices in check.

Spot gold was almost flat at $5,001.36 per ounce as of 10:57 GMT. U.S. gold futures for April delivery edged 0.1% higher to $5,005.20.

"Gold is finding support as demand for safe-haven assets remains elevated amid the geopolitical and economic uncertainty created by the war in Iran," said ActivTrades analyst Ricardo Evangelista.

Iran launched fresh attacks on the United Arab Emirates on Tuesday, causing a fire in the port of Fujairah, a key export terminal where oil loading by state firm ADNOC has been halted. The latest strikes could potentially deepen the conflict, now in its third week, that has sent energy prices surging and left at least 2,000 people dead.

Oil rose and continued to hold above $100 a barrel, with the Strait of Hormuz largely shut and U.S. allies rejecting calls to deploy warships to escort tankers through the key chokepoint.

The rising energy prices have capped the upside for gold, reviving inflation fears and scaling back expectations of interest rate cuts this year, Evangelista added.

While bullion is typically seen as an inflation hedge, it tends to underperform in high-rate environments as the opportunity cost of holding a non-yielding asset rises.

Meanwhile, the U.S. Federal Reserve is widely expected to hold rates steady for a second straight meeting when it announces its policy statement on Wednesday.

Markets are also looking out for policy decisions from the European Central Bank, the Bank of England and the Bank of Japan, which will hold their first meetings after the conflict began on February 28.

Spot silver fell 0.6% to $80.25 per ounce, while spot platinum gained 0.5% to $2,125.28, and palladium rose 0.6% to $1,607.62. (Reporting by Pablo Sinha in Bengaluru; Additional reporting by Sarah Qureshi; Editing by Diti Pujara)