Anyway, the gift is very pretty, but I don't feel comfortable in accepting it since I think of us as just friends. He gave it to me saying it was because we are friends. I've thought of telling him my parents won't let me accept it, but that's not true. They want me to tell him the truth. Keeping the gift and not dating him would make me feel like a gold digger.
Real friends can be completely honest with each other.
He might be trying to win over your heart or he might be trying to let you know he values you as a friend. Be honest and don't worry if he feels dejected. Just listen to what he says as a friend. As a friend, he should want you to be comfortable enough to share your feelings, too. The only question is if he honestly sees you as a friend or as a friend he wants to date.