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 GCv1 fell $9.20 to $1,493.60.
U.S. crude futures CLc1 fell $1 to $94.42 a barrel on Friday after disappointing economic data from China, where factory output in June grew at the slowest pace in 28 months.
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.
