Gold on track for first weekly loss in five, dollar off three-month lows

Gold futures fell nearly one percent in American trade to January 8 lows, as the dollar index rose from October 16 lows for the fifth session out of seven, following earlier data from the US. 

As of 02:53 GMT, gold futures due in February fell 0.79% to $1,282.10 an ounce to week lows, while the dollar index rose 0.10% to 96.16 away from three-month lows. 

Earlier US data showed industrial production rose 0.3% in December, slowing down from 0.4% while edging estimates of 0.2%. 

The capacity utilization rate rose to 78.7% from 78.6%, while analysts expected no change. 

Finally, Gold holdings at SPDR Gold Trust, the world's largest gold-backed investment fund, steadied at 797.71 tonnes on Thursday, after gold prices marked the third monthly profit in a row in December. .