PRECIOUS-Gold edges higher on weaker dollar; focus on US-Iran talks, Fed outlook

May 27 (Reuters) - Gold ticked up on Wednesday, supported by a weaker dollar, as investors looked for signs of progress in peace negotiations between the United States and Iran and assessed the U.S. Federal Reserve's monetary policy outlook.

FUNDAMENTALS

* Spot gold rose 0.2% at $4,516.76 per ounce, as of 0051 GMT. U.S. gold futures for June delivery gained 0.3% to $4,516.30.

* The dollar eased, making greenback-priced bullion more affordable for holders of other currencies. * Iran said on Tuesday the United States had violated a ceasefire by striking targets near the contested Strait of Hormuz, potentially complicating efforts to bring the war to a close. * U.S. Secretary of State Marco Rubio, meanwhile, said it could take "a few days" to negotiate a deal to halt the conflict, after both sides had previously indicated progress on an initial agreement that would end hostilities and restart shipping through the Strait. * U.S. consumer confidence eased in May as worries about inflation linked to the war in Iran intensified, and households' views of the labor market were largely pessimistic, though they anticipated an improvement by the end of this year.

* Markets are looking out for upcoming remarks by U.S. Federal Reserve policymakers, including Fed Vice Chair Philip Jefferson and Governor Lisa Cook, to gauge the impact of inflation on future monetary policy stance.

* Investors also await the U.S. Personal Consumption Expenditures (PCE) data for April due on Thursday, for more cues on U.S. monetary policy. * UBS lowered its year-end gold price target by $400 to $5,500 due to persistent risk from higher yields and the dollar.

* Spot silver rose 0.6% to $77.40 per ounce, platinum was little changed at $1,957.75, and palladium gained 0.9% to $1,391.68. (Reporting by Pablo Sinha in Bengaluru; Editing by Rashmi Aich)