(Reuters) - Gold prices held steady on Friday, after optimism that Greece may soon secure an urgently needed bailout helped the metal recover from a one-week low hit in the previous session.

FUNDAMENTALS

* Spot gold edged down 51 cents to $1,727.89 an ounce by 0030 GMT, on course for a 0.5-percent weekly rise after two weeks of straight losses.

* U.S. gold was also little changed at $1,730.

* Hopes that Greece has finally done enough to secure a bailout on Monday helped buoy appetite in the euro and equities.

* Encouraging U.S. labour, manufacturing and housing data also helped boost sentiment in the financial markets.

* Industry group, the World Gold Council, believed that China's central bank made significant gold purchases in the final months of 2011, said the Financial Times, quoting a senior official at the group.

* Freeport McMoRan Copper & Gold Inc (FCX.N) will renegotiate its contract with the Indonesian government to run Grasberg, the world's biggest gold mine and second-largest copper mine, the energy ministry said on Thursday.

* Spot silver was flat at $33.47, recovering from a three-week low of $32.64 hit in the previous session.

MARKET NEWS

* The S&P 500 hit a nine-month high on Thursday, fueled by strong U.S. economic data and increased hopes for a deal on a Greek bailout next week. .N

* The euro clung to overnight gains in Asia on Friday, having risen on hopes that Greece was close to clinching a second bailout package, while improved risk appetite knocked the yen lower across the board.

(Reporting by Rujun Shen; Editing by Richard Pullin)

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