PRECIOUS-Gold edges down on possible Lebanon-Israel ceasefire extension

* Lebanon seeks extension of ceasefire with Israel

* US Treasury yields pare gains after jobless claims data

* Jobless claims beat forecast, hint at labour market easing (Updates for US morning trade)

By Ishaan Arora

April 23 (Reuters) - Gold edged lower on Thursday, erasing most of the day's earlier losses, following news of a potential Lebanon-Israel ceasefire extension, and after Treasury yields pared gains following U.S. weekly jobless claims data.

Spot gold was down 0.3% at $4,723.61 per ounce, as of 1312 GMT, after falling 1% earlier to as low as $4,683.84 per ounce. U.S. gold futures for June delivery fell 0.2% to $4,741.50.

"What provided bid was signs of a potential breakthrough in the Lebanon ceasefire earlier this morning. But that happened to coincide with the economic data release," said Daniel Ghali, commodity strategist at TD Securities.

The U.S. is set to host a second meeting between Lebanese and Israeli envoys on Thursday, with Beirut seeking the extension of the ceasefire, a day after Israel killed at least five people including a journalist in airstrikes.

"Certainly yields and the data are playing a role, but all asset prices, including gold, are moving with headlines," Ghali said.

Benchmark 10-year U.S. Treasury yields let go of most gains, after rising to an over one-week high earlier, decreasing the opportunity cost of holding non-yielding bullion.

Meanwhile, more Americans filed claims for unemployment benefits last week than anticipated. Initial claims for unemployment benefits rose by 6,000 to a seasonally adjusted 214,000 for the week ended April 18, up from Reuters' poll of 210,000.

The Iran war has boosted oil prices, with Brent trading above $100 a barrel on Thursday as peace talks between the U.S. and Iran stalled and restrictions on trade through the Strait of Hormuz continued.

Soaring energy prices tend to boost inflation, leading to higher chances of an increase in interest rates. Even though gold is seen as an inflation hedge, higher interest rates dampen the non-yielding asset's appeal.

Spot silver fell 2.3% to $75.89 per ounce, while platinum lost 2% to $2,032.77, both having hit more than one-week lows earlier. Palladium was down 2.2% at $1,511.17, after touching a more than two-week low. (Reporting by Ishaan Arora in Bengaluru; Editing by Joe Bavier)