* TSX flat

* Oil and gold prices fall

* Badger Infrastructure climbs on Q1 revenue beat

(Updates prices and details throughout)

By Tharuniyaa Lakshmi

May 1 (Reuters) - Canada's main stock index traded flat

on Friday as technology stocks climbed while energy and

materials shares retreated, with investors weighing potential

diplomatic progress in the Middle East and corporate earnings.

At 10:38 a.m. ET, the Toronto Stock Exchange's S&P/TSX

Composite Index was up 0.04% at 33,951.33 points, on

track to end the week with nominal gains.

The benchmark rose 3.65% in April, buoyed by tentative hopes

of a resolution to the U.S.-Iran war, recouping much of March's

losses.

Investor sentiment was supported by a report from Iranian

state media that said Tehran sent its latest proposal for

negotiations with the United States to Pakistani mediators on

Thursday.

The energy sub-index slipped 1.8% as oil prices

eased following the news.

The heavy-weight mining stocks also fell 0.8%,

tracking lower gold prices.

"There's going to be a lot of uncertainty until the tensions

kind of die down," said Webull Canada CEO Michael Constantino,

adding that the TSX appeared set to ride out the volatility once

tensions ease.

Technology stocks led the gainers on the day,

rising 1.7%.

Badger Infrastructure jumped 12.4% to the top of

the main index after the non-destructive excavation firm's

first-quarter revenue beat estimates on strong end-market demand

and higher fleet utilization.

Imperial Oil ( IMO ) fell 4% after the Canadian oil

producer posted a fall in first-quarter profit, hurt by lower

refinery throughput.

Separately, data released on the day showed Canada's

manufacturing sector expanded in April at its fastest pace in

nearly four years, as the Middle East conflict spurred inventory

building and added to inflation pressures.

(Reporting by Tharuniyaa Lakshmi in Bengaluru; editing by

Joyjeet Das)