As scary as it seems maybe the best thing to do is to tell him that you are gay, I am sure he knows considering he has seen the gay jewelry and such. If he had an issue with gay I tink he would have tried someting nasty by now.
Next time he is talking or you two talk I would casually bring up the fact that "straight sex is gross" and "I have a lot of straight friends" if he brings up sex or gayness again. Be prepared that he may ask you intimate details and such about being gay and you may have to educate him about private things and sterotypes, etc.
My co-worker is very strict Catholic and I was SURE that he would have a problem with me being a lesbian. I had heard him and others talk about "if gay people get the right to marry, what else will they want?" and other boarderline homophobic remarks. Finally, I did tell him(cause I got tired of hiding my wife away and lying all the time)and surprise, he has turned out to be the most loyal of supports for me. He was a bit freaky at first, but after he asked me a WHOLE bunch of questions and I answered, he said "I have never had a lesbian friend before" I told him he probably had more gay friends than he knew of. I know other gay people(including my wife) who say that if he wants to know about gay people to read a book or whatever and that he is out of bounds asking, but I used it as an opourtunity to educate and I am very pleased with the results.
Either way, good luck and blessings to you
