PRECIOUS-Gold falls 1.5 pct on dollar gain, posts weekly drop

* Technical sell-stops triggered below support at $1,450/oz * Major gold buying event in India should underpin * Biggest gold ETF reports first inflow since mid-March By Frank Tang and Jan Harvey NEW YORK/LONDON, May 10 (Reuters) - Gold fell nearly 1.5 percent on Friday as a sharp rise in the dollar against the Japanese yen triggered technical selling, sending the metal to a two-week low. Bullion posted a weekly drop of around 2.5 percent as continued outflows in gold-backed exchange-traded funds more than offset strong physical retail demand following gold's historic selloff in mid-April. Gold slid for a second consecutive day as the yen plummeted to its lowest against the U.S. dollar in more than four years on Friday, a day after the U.S. currency rose above the 100-yen level. The dollar rally also weighed on industrial commodities led by crude. "It's all about the dollar strength. That's where all the fast money is going," said Miguel Perez-Santalla, vice president of BullionVault, an online physical gold and silver market. "I think this is another opportunity for physical buyers," he said. Gold's sharp losses last month has intensified a disconnect between funds that sold on dissatisfaction over bullion's underperformance and individual investors who could not get enough physical gold coins and bars at bargain prices. Spot gold fell as much as 2.5 percent to a low of $1,420.60 an ounce earlier in the session. It was down 1.3 percent at $1,438.51 an ounce by 2:28 p.m. (1828 GMT) U.S. Comex gold futures for June delivery settled down $32 at $1,436.60 an ounce, with trading volume around 10 percent above its 30-day average, preliminary Reuters data showed. Gold accelerated losses after sell-stops were triggered below technical support at $1,450 an ounce, said Carlos Sanchez, director of commodities and asset management at CPM Group. Bullion's failure to break above a $40 trading range in the past two weeks suggested sentiment remains weak after the metal plunged to $1,321.35 an ounce on April 16, its lowest in more than two years, analysts said. ETF REPORTS INFLOW On Thursday, the world's largest gold-backed ETF, the SPDR Gold Trust, reported its first daily inflow since March 19. SPDR Gold's holdings are down 167.1 tonnes so far in the second quarter. Hopes of surging physical bullion demand from China and India could further support bullion prices, analysts said. CPM Group's Sanchez cited Akshya Tritiya, a key gold-buying Hindu festival on May 13, for near-term support to bullion prices. Platinum group metals were down after Anglo American Platinum said on Friday it would cut 6,000 South African mining jobs, fewer than half the 14,000 initially proposed. Platinum was down 1.1 percent at $1,484.99 an ounce, while palladium inched down 3 cents to $703.97 an ounce. Silver edged up 0.2 percent to $23.70 an ounce. 2:28 PM EDT LAST/ NET PCT LOW HIGH CURRENT SETTLE CHNG CHNG VOL US Gold JUN 1436.60 -32.00 -2.2 1418.50 1461.20 215,480 US Silver JUL 23.658 -0.253 -1.1 23.150 23.875 46,761 US Plat JUL 1486.00 -30.50 -2.0 1472.30 1515.90 14,040 US Pall JUN 705.70 -9.05 -1.3 696.60 712.35 5,783 Gold 1438.51 -19.19 -1.3 1421.38 1461.86 Silver 23.700 0.040 0.2 23.220 23.900 Platinum 1484.99 -17.01 -1.1 1475.25 1513.00 Palladium 703.97 -0.03 0.0 699.25 709.22 TOTAL MARKET VOLUME 30-D ATM VOLATILITY CURRENT 30D AVG 250D AVG CURRENT CHG US Gold 246,037 218,625 178,227 22.73 3.21 US Silver 51,625 79,023 55,051 26.51 -1.11 US Platinum 14,090 12,233 11,819 19.75 0.16 US Palladium 6,393 5,321 5,015