Gold heads for worst weekly fall since March

(Reuters) - Gold slipped in thin trade on Friday, heading for its worst weekly fall since March, as investors failed to shake off worries about Europe's festering debt crisis which threatens to hurt global economic growth. Gold, though traditionally seen as a safe haven, fell victim to a wave of sell-offs across risk assets in the past few days, which forced investors and speculators to sell bullion to cover losses in other markets. FUNDAMENTALS * Spot gold eased $1.42 to $1,592.31 an ounce by 0020 GMT, having risen slightly on Thursday as higher U.S. equities spurred bargain hunting. * U.S. gold for June delivery fell $2.80 an ounce to $1,592.70 an ounce. * Fading hopes for more U.S. monetary easing after a strong run of U.S. economic data also prompted investors to unwind bullish bets in gold. Thursday's data showed U.S. jobless claims edged down last week, offering a glimmer of hope after April's weak employment growth. * European Union paymaster Germany warned Greece on Thursday that European partners could only go on aiding debt-ridden Athens if it sticks to an international bailout programme rejected by voters in a general election. * Shanghai silver futures were greeted with strong investment demand when trade opened on Thursday as eager investors poured in to take advantage of new trading opportunities, even though price performance fell short of expectations. * For the top stories on metals and other news, click ,or MARKET NEWS * The Nikkei share average steadied in early trade on Friday ahead of China's industrial output and inflation data, which will give further clues to the health of the world's second largest economy, Japan's largest export market. .T * U.S. stock index futures fell sharply on Thursday evening as JPMorgan Chase & Co stunned investors with news that its chief investment office had incurred "significant mark-to-market losses" that it said could "easily get worse. * The euro gained against the dollar on Thursday, snapping eight straight sessions of declines and bouncing from its recent 3-1/2-month low as stress in Spanish debt markets eased and Greece secured funds to repay its bondholders. (Reporting by Lewa Pardomuan; Editing by Robert Birsel)http://www.reuters.com/article/2012/05/11/us-markets-precious-idUSBRE8390RW20120511