* Gold posts 2.33 pct weekly drop, worst since early May
* First close below 50-day M.A. since Feb, bearish signal
* Strong dollar, oil, stock market losses weigh on prices
* Coming Monday: May U.S. personal income/spending
(Rewrites, adds comments, link to graphic, updates market activity)
By Frank Tang
NEW YORK, June 24 (Reuters) - Gold slumped for a second day on Friday to conclude its worst week in eight, crashing through key technical supports, as investors shed riskier assets and bought the dollar on heightened concerns over Greek debt.
With less than a week until the end of the Federal Reserve's second quantitative easing program, bullion's three percent fall over the past two days has raised questions about whether its years-long boom has stalled. After reaching a high of $1,575.79 on May 2, gold has struggled.
Spot prices ended the week below their 50-day moving average for the first time since February, they ruptured a trendline support stemming back to a January low, and they broke out of a six-week sideways pattern to the downside.
All of those technical chart patterns were seen as warning signs by many investors.
"Once the 50-day average is broken on a weekly basis, it a first sign of weakness and that the trend may be changing," said Adam Sarhan at Sarhan Capital.
Graphic: http://r.reuters.com/ruz32s
Spot gold
U.S. August gold futures
The dollar gained almost 1 percent for the week versus the euro on worries that Greece's parliament will not approve a package of austerity measures next week. The U.S. currency also strengthened after the Federal Reserve, earlier this week, offered no hope for additional monetary support.
"Gold's decline has to do with the strength of the dollar, and since the equity market is resuming its decline, that's what's working counter to gold prices at the moment," said Mark Luschini, chief investment strategist at broker-dealer Janney Montgomery Scott, which manages $54 billion in assets.
Silver
TECHNICAL WEAKNESS
Rick Bensignor, chief market strategist at Dahlman Rose, said, gold's pullback could have more room to the downside, with next major support in area of May's lows between $1,488 and $1,471 a tonne.
"The dollar could rally up to its 200-day moving average, and that will not help gold advance right now," he said.
Worries about Greece defaulting on its massive debt, a development that would roil markets if the country's parliament does not approve austerity measures and concerns over some Italian banks dragged global stock markets sharply lower for a second day. [USD/] [.N]
"You have prices of crude oil, commodities and the stock market again under pressure. And, you have a strong dollar. To think that gold is going to rally, it's just not going to happen," said independent investor Dennis Gartman.
"Every market that has the term 'risk' associated with it, everybody wants out," he said.
With the second round of Fed quantitative easing (QE2) ending in June, some investors question whether risk assets could rise further. Gold has thrived on the expectation of an extended period of low U.S. interest rates, and that placed non-yielding bullion in a better position to compete for investor cash against stocks or bonds.
Among platinum group metals, platinum
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US gold