* Spot gold may bounce towards $1,284 - analyst
* SPDR gold holdings hit lowest in more than six months
By Sethuraman N R
April 25 (Reuters) - Gold inched higher on Thursday as weak
economic data rekindled fears over global growth, while bullion's
recovery from four-month lows and an improved technical picture
prompted some investors to cover their short positions.
Spot gold was up 0.1 percent at $1,276.43 per ounce at 1256
GMT. U.S. gold futures were steady at $1,278.30.
World equity markets slipped as a surprise deterioration in German
and South Korean economic data brought back to the fore concerns about
a global downturn.
"The correction in (stock) markets has provided some support
for gold. But the (gold) market is still looking for catalysts for a
significant move and there is not much momentum in either
direction," Capital Economics analyst Ross Strachan said.
"Gold is awaiting bigger developments. We've got U.S. GDP and
that's expected to have a significant impact on the dollar."
U.S. gross domestic product data will be released on Friday, with
the economy forecast to have grown by 2.1 percent in the first
Gold has recovered after hitting a four-month low of $1,265.90 an
ounce this week, despite expectations that prices could fall towards
the 200-day moving average around $1,251, analysts said.
"Gold prices are showing some resilience here. We haven't
managed to see an extension to the technical breakout we saw this
week," said Ole Hansen, commodity strategist at Saxo Bank.
"The fact that we have managed to recover and find bids is
making some shorts nervous and that is providing some support right
now. The correction in global markets is also just adding to the equation."
Data from the U.S. Commodity Futures Trading Commission showed
speculators switched to a net short position in COMEX gold in the week
to April 16.
The bearish sentiment in gold was also reflected in holdings of
SPDR Gold Trust , the world's largest gold-backed exchange-traded
fund. Holdings dipped 0.2 percent to 747.87 tonnes on Wednesday, the
lowest since Oct. 19.
Spot gold may bounce towards resistance at $1,284, as it has found
support at $1,264, Reuters technical analyst Wang Tao said.
Elsewhere, silver was steady at $14.91 an ounce, while platinum
too was firm at $878.84.
Palladium dipped 0.1 percent to $1,416 an ounce.
(Reporting by Nallur Sethuraman in Bengaluru; Editing by Kirsten
Donovan and Dale Hudson)
((Sethuraman.NR@thomsonreuters.com; (Within U.S. 1-651-848-5832,
Outside U.S. +91 8067496031); Reuters Messaging: firstname.lastname@example.org))