* Silver, palladium set for weekly gains
* Platinum heads for first weekly drop in three
* SPDR Gold Trust holdings fall 0.45 pct
* U.S. gross domestic product data due at 1230 GMT
(Adds comment, updates prices) BENGALURU, July 28 (Reuters) - Gold steadied on Friday after retreating from a more than six-week high hit in the previous session, with investors looking for cues on the health of the U.S. economy from second-quarter gross domestic product data due later in the session. A recovery in the world's biggest economy would give the beleaguered dollar some respite from the recent sell-off, and also dent the likelihood for higher interest rates which benefits non-interest yielding and safe-haven gold. "Our feeling is that the (GDP) number will be in line to somewhat below the 2.8 figure forecast, in which case we could see another modest advance in gold," said INTL FCStone analyst Edward Meir. "We expect to see a lot of action around the second-quarter GDP number."
Spot gold was little changed at $1,257.55 per ounce
at 0421 GMT, but was up slightly this week in what could be the precious metal's longest spell of weekly gains since May.
U.S. gold futures for August delivery fell 0.2
percent to $1,257.60 per ounce.
The dollar index was unchanged at 93.860 against a
basket of six major currencies. "I think it is more important to keep an eye on the dollar and whether it continues to support gold," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong. A weaker dollar makes bullion cheaper for non-U.S. investors. Higher interest rates would push yields up and likely boost the dollar.
Meanwhile, holdings at the SPDR Gold Trust , the
world's largest gold-backed exchange-traded fund, fell 0.45 percent to 791.88 tonnes on Thursday from 795.42 tonnes on Wednesday.
Among other precious metals, silver was almost flat
at $16.53 per ounce, heading for a third weekly gain.
Platinum fell 0.1 percent to $921.55 per ounce and
was on track for its first weekly decline in three.
Palladium fell 0.1 percent to $871.55 per ounce. In
the previous session, palladium hit its highest in over a month.
(Reporting by Nithin Prasad and Arpan Varghese in Bengaluru; Editing by Richard Pullin and Subhranshu Sahu)