PRECIOUS-Gold set for weekly loss as inflation concerns linger on US-Iran uncertainty

(Recasts for U.S. morning trade)

* Gold hits lowest since April 13, set to fall more than 2% on the week

* Iran Foreign Minister to arrive in Pakistan for talks - source

* Oil, dollar, Treasury yields, all set for weekly gain

By Ishaan Arora

April 24 (Reuters) - Gold prices edged higher on Friday but were on course for their first weekly loss in five, as inflation concerns remained heightened on the impasse in the Iran war.

Spot gold was up 0.3% at $4,704.63 per ounce at 1313 GMT, having hit its lowest point since April 13 earlier in the session, and is down 2.5% so far this week. U.S. gold futures for June delivery edged 0.1% lower to $4,721.10.

"As in the previous days, the gold move is connected to the oil price. Oil was up 2%, now down 1%, and it seems to be related to potential renewed talks between Iran and the U.S.," said UBS analyst Giovanni Staunovo.

"Gold saw a fall (this week) because the oil price was going higher, so were expectations of higher rates, the dollar, yields, all correlated." A source said that Iranian Foreign Minister Abbas Araqchi is expected to arrive in Islamabad on Friday night and peace talks with the U.S. are likely to take place.

Oil prices turned negative on Friday with Brent around $104 a barrel, but still headed for a 16% gain for the week.

Higher crude oil prices can stoke inflation, driving up chances of higher interest rates. While gold is seen as an inflation-hedge, higher rates dampen demand for the non-yielding metal.

Benchmark 10-year U.S. Treasury yields were up 1.6% this week, raising the opportunity cost of holding gold, while the dollar was on track for its first weekly gain in three, making bullion more expensive for holders of other currencies. Meanwhile, Israel and Lebanon extended their ceasefire for three weeks at a meeting at the White House brokered by U.S. President Donald Trump, who said he was prepared to wait for "the best deal" to end conflict with Iran.

Spot silver rose 0.3% to $75.65 per ounce, platinum lost 0.4% to $1,998.60 and palladium gained 1.6% to $1,491.98. (Reporting by Ishaan Arora in Bengaluru; Editing by Kirsten Donovan)