(Corrects attribution of quote in paragraphs 15/16)
* Oil prices slide more than $1/barrel, dollar index up
* Coming up: U.S. ISM manufacturing data for June, 1400 GMT
* Platinum, palladium outperform in weekly performance
By Jan Harvey
LONDON, July 1 (Reuters) - Gold fell to six-week lows below $1,490 an ounce on Friday, hurt by a drop in oil prices and gains in the dollar against a basket of currencies, and as Greece's approval of a key austerity package cut the metal's appeal as a haven from risk.
Spot gold fell as low as $1,489.86 an ounce, its
weakest since May 20, and was bid at $1,492.00 an ounce at 0927
GMT, against $1,499.60 late in New York on Thursday. U.S. gold
futures for August delivery
U.S. crude futures
Gold's relationship with oil prices has been patchy of late, with the risk aversion that typically lifts the precious metal's safe-haven appeal often hurting industrial commodities, but the two assets moved together early on Friday.
"We have crude oil weaker, which is reducing inflation fears, we have a slightly stronger or well-maintained U.S. dollar and weakness in stock markets, which all argue for weaker precious metals," said Peter Fertig, a consultant at Quantitative Commodity Research.
The dollar index firmed a touch on Friday as some investors covered shorts ahead of the long U.S. holiday weekend, with all eyes on U.S. manufacturing data due later in the day.
Analysts on average are expecting the index to slip to 51.8 from 53.5 in May.
UBS analyst Edel Tully, noting that gold prices have dropped sharply on this day for the last two years, said in a report: "Whether today will bring a hat-trick July 1 pullback could well depend on this afternoon's US ISM manufacturing print."
"While there is some concern that this could come in below 50, upside surprises from the Chicago PMI and NAPM-Milwaukee data over the past few days bode well for the ISM numbers."
European shares meanwhile turned negative early on Friday, giving back some gains after a four-day rally, with miners giving up some gains as metals prices levelled off.
DEBT BURDENS
Gold has remained largely within a narrow $1,490-1,515 range this week, but is on track for a second consecutive weekly loss, of around 0.4 percent.
In the world's biggest gold consumer, India, physical buying edged up as traders continued to see gold below the keenly watched $1,500 an ounce level as a bargain, but buying was muted due to a seasonal lull in demand.
News that the Greek parliament has accepted a package of austerity measures needed for it to access further funding from the European Union and International Monetary Fund has tempered some early risk aversion, curbing demand for gold as a haven.
Concerns over the stability of the euro zone as some smaller economies struggle with heavy debt burdens were a crucial factor driving gold to record highs above $1,575 an ounce earlier this year.
"The Greek vote was broadly positive for base metals, negative for precious metals, which are still richly priced," said RBS Global Banking & Markets analyst Nick Moore.
"We prefer platinum and palladium, (which are set) to benefit from automotive manufacturing boosting output later on."
The white metals have outperformed gold this week, with platinum rising 1.5 percent and palladium up 3.3 percent, as a retreat in risk aversion benefited industrial metals more than safe-haven gold.
Spot platinum was bid at $1,701.49 an ounce versus $1,720.15, while spot palladium was at $750.47 an ounce against $752.25.
Silver was bid at $34.17 an ounce against $34.65. Holdings of the world's largest silver-backed exchange-traded fund, the iShares Silver Trust fell by 1.4 million ounces or just under 0.5 percent on Thursday, the fund said. (Reporting by Jan Harvey)