* Gold down 1 pct after Greece; weak oil, grains weigh
* iShares silver ETF biggest quarterly outflow since launch
* Platinum group metals outperform for week (Rewrites, adds comment, link to graphic, new byline, dateline, previously LONDON)
By Frank Tang
NEW YORK, July 1 (Reuters) - Gold fell around 1 percent on Friday to record its second straight weekly loss, dragged down by fund selling amid commodity weakness and as safe-haven buying faded after Greece's approval of an austerity package.
Bullion came under pressure as Wall Street rallied after a surprising jump in U.S. manufacturing data eased concerns about a tepid economic recovery. Slipping crude oil and grain prices also diminished gold's appeal as an inflation hedge.
"Gold clearly is not getting a lift from the global economic picture or from the sovereign debt front, and commodities as an asset class is not attracting the same level of fund buying like they were a month or two months ago," said Bill O'Neill, of commodities investment firm LOGIC Advisors.
The metal has shed 5 percent in the past seven sessions, partly due to technical selling as gold dived below $1,500 an ounce and fell toward its 100-day moving average.
Spot gold
U.S. gold futures for August delivery
Gold fell 1 percent for the week.
Silver
The trust saw its biggest quarterly outflow since its launch in the three months to end June, data on its website showed, as investors turned their backs on silver amid fears the metal's rally to record highs had been overdone.
SAFE-HAVEN BUYING EBBS, GREECE EYED
The Greek parliament's acceptance this week of a package of austerity measures needed to obtain further funding from the European Union and International Monetary Fund has tempered some risk aversion in the market, curbing demand for gold. [ID:nN1E75T1XA] <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Interactive timeline on euro zone debt crisis: http://link.reuters.com/rev89r
Q2 gold performance: http://r.reuters.com/duj88r ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
"Without a Greek default or something similar, it is difficult to think of a catalyst that would send gold to new record highs," said Robin Bhar, an analyst at Credit Agricole.
"The other factor that could is more quantitative easing out of the United States, which is unlikely at the moment," he added. "We think the dollar is probably in for a rebound, so that provides a bit of a headwind for gold."
The dollar index rose for the first time in the last five days, and is likely to gain further against the euro given investors' belief that Greece's debt crisis is far from over. [FRX/]
Investors' attention focused on the equity markets as July started on a positive note for U.S. stocks with Wall Street notching its fifth day of gains after an encouraging manufacturing report.
"We have clearly seen a relief rally across the board in all risk assets, and gold, (which benefits from) fear of default, is coming off," said Credit Agricole's Bhar.
Platinum group metals have outperformed gold this week, with platinum rising 2 percent and palladium up 4 percent, as a risk-on trade benefited industrial metals more than gold.
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