Gold down on firm dollar; heads for 1st weekly drop in 5

REUTERS - Gold on Friday held near two-week lows as the dollar strengthened on the new U.S. administration's plans to spur growth, leaving the metal on track to end the week lower for the first time since late December.

FUNDAMENTALS

* Spot gold prices were down 0.1 percent at $1,186.80 per ounce at 0110 GMT. On Thursday, they fell to their lowest since Jan. 11 at $1,184.03

* U.S. gold futures fell 0.2 percent at $1,187 per ounce.

* The dollar index, which measures the greenback against a basket of currencies, rose 0.1 percent to 100.500, after touching a seven-week low of 99.793 in the prior session.

* New U.S. single-family home sales fell to a 10-month low in December after three straight months of solid gains, but the housing market recovery remains intact as a tightening labor market boosts wage growth.

* Fears of a resurgence of euro zone inflation are exaggerated, so winding down from stimulus has not been discussed, a top European Central Bank policymaker said on Thursday, even as the bank's top hawks suggested that the exit may be close.

* Physical gold demand fell 20 percent last year to its lowest since 2009, GFMS analysts at Thomson Reuters said in a report on Thursday, as a rebound in prices blunted appetite for the metal.

* China's net gold imports via main conduit Hong Kong rose 2.7 percent in December over the previous month, data showed on Thursday.

* Lonmin reported weaker than expected output on Thursday, causing analysts to raise doubts over 2017 production targets.

* Switzerland's gold exports to China surged to their highest on record in December at 158 tonnes, data from the Swiss customs bureau showed on Thursday, nearly triple the level of the same month a year earlier.

* A joint venture between Russia's top gold producer Polyus and state conglomerate Rostec has bought the rights to develop Sukhoi Log, one of the world's largest untapped gold deposits, for 9.4 billion roubles ($158 million).

* South African gold and platinum producer Sibanye Gold said on Thursday it may have to cut up to 330 jobs in platinum operations it acquired from Anglo American Platinum AMSJ.J and Aquarius Platinum.

* Industrial commodities such as oil and metals are set for further price rises this year, while precious metals prices are likely to fall, said World Bank senior economist John Baffes on Thursday.

(Reporting By Nallur Sethuraman in Bengaluru; Editing by Sonali Paul)