* Brent prices headed for a weekly gain

* Gold may stay under pressure as inflation concerns

linger, analyst says

* Iran sends proposal for negotiations to mediator

Pakistan

(Recasts for U.S. market open)

By Anjana Anil

May 1 (Reuters) - Gold fell on Friday and was headed for

a weekly loss as inflation concerns reinforced higher-for-longer

rate expectations, with oil prices holding near $110 a barrel.

Spot gold was down 0.7% at $4,588.32 per ounce at

9:30 a.m. ET (1330 GMT) after falling to as low as $4,559.48

earlier in the session. It was on track for a weekly loss of

2.3%.

U.S. gold futures for June delivery fell 0.6% to

$4,600.00.

"Precious metal traders continue to sell gold after the Fed

signalled U.S. interest rates would remain on hold for the near

term due to inflation concerns," said Chris Gaffney, president

of world markets at EverBank.

This downward trend in gold could continue in the near term

as these concerns persist, with oil prices remaining elevated,

he added.

Brent prices headed for a weekly gain, and continued to

stoke fears of a global economic slowdown and surging inflation

as fuel prices climb.

Increasing costs could encourage central banks to hold

interest rates higher for longer, which would pressure

non-yielding assets like gold as investors turn to alternate

options like Treasury yields that offer better returns.

The U.S. Federal Reserve kept interest rates unchanged this

week and adopted a hawkish tone that saw markets give up on any

hope for a rate cut there this year.

Bullion prices have fallen since the start of the Iran

conflict in late February, even though the metal is considered a

hedge against geopolitical uncertainty.

In the Middle East, Iran sent its latest proposal for

negotiations with the United States to Pakistani mediators on

Thursday, state news agency IRNA reported.

Among other precious metals, spot silver prices rose

1.4% to $74.78 per ounce.

"Long-term outlook (for silver) remains supported by a sixth

consecutive annual market deficit, shrinking above-ground

inventories and firm demand from solar and private investors,"

wrote Ole Hansen, head of commodity strategy at Saxo Bank.

Platinum was up 0.3% at $1,991.80, and palladium

lost 0.1% to $1,522.25.