Gold eases but on track for best week in a month

SINGAPORE (Reuters) - Gold eased on Friday after gaining more than 2 percent in the previous session as strong U.S. data indicated the Federal Reserve could soon start tapering its massive stimulus.

The metal, however, was holding near two-month highs and was headed for its best weekly gain in over a month on technical buying and inflows into the world's biggest gold exchange-traded fund.

FUNDAMENTALS

* Spot gold fell 0.08 percent to $1,364.41 an ounce by 0012 GMT. It has gained nearly 4 percent this week.

* It rose to a near two-month high on Thursday, gaining 2.3 percent as a drop in the U.S. dollar triggered short-covering and a technical breakout once prices breached key resistance at $1,350 an ounce.

* Silver eased after jumping 5 percent to a near three-month high. Platinum and palladium added to gains and were trading close to two-month highs.

* The number of Americans filing new claims for jobless benefits fell to a near six-year low last week and consumer prices rose broadly in July, which could draw the Federal Reserve closer to trimming its massive bond-buying program.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.03 percent to 912.92 tonnes on Thursday. It had, however, seen gains on Wednesday, only the second increase in two months.

* Commodities and precious metals funds, which mainly invest in gold futures, received $130.7 million over the week, marking the first injections of cash into the funds since last March.

* South African gold producer Sibanye Gold said on Thursday it could cut up to 1,600 jobs after a review of its business, a move that could provoke a backlash from the government and labour unions as tough wage talks take place.

(Reporting by A. Ananthalakshmi; Editing by Richard Pullin)