* SPDR gold holdings fall 0.5 pct on Thursday
* Gold has a strong support at $1,300 level- analyst
By K. Sathya Narayanan
March 1 (Reuters) - Gold prices hit a two-week low on Fridayas the dollar recouped losses on upbeat U.S. economic data,while mounting concerns over a slowdown in global growth offeredsupport to the safe-haven metal.
As of 0517 GMT, spot gold XAU= was flat at $1,312.67 perounce, after slipping to its lowest since Feb. 15 at $1,311.61earlier in the session.
U.S. gold futures GCv1 were down 0.1 percent at $1,314.30per ounce.
The dollar, which pulled back from over three-week lows,scaled a 10-week high against the yen and was marginally higher .DXY against major currencies. USD/
The U.S. Commerce Department's report showed abetter-than-expected performance in the fourth quarter pushedgross domestic product (GDP) up 2.9 percent for the year, justshy of the 3 percent annual growth target in 2018.
"Gold is still fundamentally supported for the longer termdespite the bearish pressures we see for now due to slight risein bond yields and a firm dollar," said Benjamin Lu, an analystwith Singapore-based Phillip Futures.
The benchmark 10-year government yield US10YT=RR was up3.1 basis points on Thursday after the U.S. data. US/
Higher yields can translate into more demand for the dollarsince the currency is used to buy bonds, a traditional safehaven, eroding bullion's appeal.
"Asian economic data has weakened significantly and itcontinues to show that the economy has started to slow," Lusaid, adding gold was being supported by broad-based economicweaknesses.
Factory activity in China contracted to a three-year low inFebruary as export orders fell at the fastest pace since theglobal financial crisis.
Also, Japanese manufacturing activity contracted in Februaryat the fastest pace in two-and-a-half years as factories cutback output amid shrinking domestic and export orders, a revisedsurvey showed on Friday.
Gold has lost the support from $1,320 level, technically andhas not got enough boost from Federal Reserve Chairman JeromePowell's testimony and negative news on China-U.S. trade, HongKong-based bullion dealer Wing Fung said in a note.
"Concerning the slowdown of global economic growth, we are not pessimistic about gold," Wing Fung said, adding the metalhas a strong support at $1,300 level.
Reflecting a drop in bullion prices, holdings of SPDR GoldTrust GLD , the world's largest gold-backed exchange-tradedfund, fell 0.52 percent on Thursday. GOL/ETF
Gold may break a support at $1,311 per ounce and fall to thenext support at $1,299, according to Reuters analyst Wang Tao. TECH/C
Among the other precious metals, palladium XPD= gained 0.2percent to $1,546.70 per ounce, after retreating from itsall-time peak of 1,565.09 scaled earlier in the week.
Platinum XPT= was up 0.1 percent at $870.87 per ounce, butwas trading below its more than three-month high of $876 hit inthe previous session.
Spot silver XAG= was down 0.1 percent at $15.58 per ounce. (Reporting by K. Sathya Narayanan in Bengaluru; Editing byGopakumar Warrier and Sherry Jacob-Phillips) ((Sathya.Narayanan@thomsonreuters.com; within U.S. +1 651 8485832, outside U.S. +91 80 6749 3226/1298; Reuters Messaging:firstname.lastname@example.org))