Gold eased on Friday, extending the last two sessions' 3 percent correction to its lowest in more than a fortnight, as losses in other commodities and a drop in Asian stock markets prompted some fund selling of the metal. Crude oil and other precious metals weakened, with palladium falling nearly 5 percent to $393 an ounce, its lowest since early February, and platinum slipping 4 percent in Asian trade. While traders report that lower prices are lifting interest in physical investment products like coins and bars as concerns over the fiscal health of the euro zone persist, technical signals suggest some further weakness in gold. "Gold price action remains under pressure, falling to two-month trendline support at $1 175," said technical analysts at Barclays Capital in a note. "With daily momentum rolling bearish... the downside bias remains for a push toward $1 146," they said. PRICES * Spot gold was at $1 177.35 an ounce at 08:47 SA time compared with $1 181.10 late in New York on Thursday. * Silver was at $17.72 from $17.59. * Platinum at $1 491.50 from $1 509. * Palladium at $413.25 from $412.75. DATA/EVENTS * Euro zone May provisional manufacturing PMI, due 0758 GMT. * Euro zone March current account data, due 0800 GMT. * Germany May provisional manufacturing, services PMI, due 0728 GMT. * Germany May IFO business climate index, due 0800 GMT. * European Union Task Force of finance ministers meet in Brussels to brainstorm about the necessary changes to EU budget rules, 1100 GMT. * US Economic Cycle Research Institute (ECRI) releases its weekly index of economic activity for May 14, 1430 GMT. MARKET NEWS * The dollar weakened against the euro, with the single currency rising as a bout of short-covering extended after its slide to a four-year low earlier this week. * Oil prices dropped to near $70 a barrel, after falling the previous day for a seventh time in eight sessions, on unabated fears that Europe's debt crisis could hurt global economic growth and slow energy demand. * Asian stock markets slid as worries about the euro zone and the flare-up in market volatility prompted investors to sell shares and keep cash until calm returns. FUNDAMENTALS * The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings totalled 1,220.152 tonnes as of May 20, unchanged from the previous business day when they hit a record high. * Pan American Silver sees the output of its San Vicente mine in Bolivia increasing by nearly 25 percent this year, after surging threefold in 2009, a company executive said on Thursday. TECHNICALS * Gold support at $1 156, resistance at $1 191, 14-day RSI at 32.1. * Silver support at $17.49, resistance at $18.33, 14-day RSI at 34.0. * Platinum support at $1 452, resistance at $1 534, 14-day RSI at 33.7.

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