PRECIOUS-Gold falls with focus on key central bank meetings

* Brent crude oil prices hit three-week high

* US Federal Reserve meets this week

* Trump says Iran can phone if it wants to talk (Updates analyst comments and prices)

By Ishaan Arora

April 27 (Reuters) - Gold fell on Monday as a lack of diplomatic progress to end the Iran war kept oil prices and inflation concerns high, while there was also focus on key central bank meetings this week for updates on the economic fallout of the U.S.-Israeli war on Iran.

Spot gold was down 0.7% at $4,677.37 per ounce at 11:36 a.m. EDT (1536 GMT). U.S. gold futures for June delivery fell 1% to $4,692.50.

"What we're seeing is the market continuing to have doubts that a robust agreement that will open up the Straits of Hormuz is going to happen imminently. And that's a bit of a problem for gold and silver," said Bart Melek, global head of commodity strategy at TD Securities.

Efforts to bridge differences between Washington and Tehran have not halted, Pakistani mediation sources said, after U.S. President Donald Trump called off a trip by his envoys and said Iran should call when it wants a deal.

Brent oil hit a three-week high as the Strait of Hormuz - normally a route for about one-fifth of the world's seaborne oil and gas traffic - remained largely shut.

"With inflation double what the target is, it's going to be very difficult for the U.S. central bank to cut rates in the months to come, and that is a negative for gold," Melek added.

Higher energy prices are adding to inflation fears. While gold is seen as an inflation hedge, high interest rates reduce the appeal of the non-yielding asset.

U.S. Federal Reserve officials will gather in Washington for what could be Jerome Powell's last meeting as Fed chair. The central bank will release its policy statement at 2 p.m. EDT (1800 GMT) on Wednesday.

Investors are also watching a run of major central bank meetings this week for clues to rate paths and the war's impact on the global economy.

Spot silver fell 0.7% to $75.15 per ounce, platinum fell 1.1% to $1,989.70, and palladium was down 1.6% at $1,472.78. (Reporting by Ishaan Arora in Bengaluru; Editing by Mark Potter and Kevin Liffey)