* Bullion up about 0.5 pct so far this week
* Spot gold neutral in $1,274-$1,284 range-analyst (Updates prices, adds comment)
By Sethuraman N R
April 26 (Reuters) - Gold rose on Friday as the dollar fell after data suggested an acceleration of U.S. growth was driven by temporary factors that are likely to reverse in the coming quarters.
Spot gold was up 0.4 percent at $1,282.37 per ounce at 1259 GMT, after hitting its highest since April 16 at $1,283.59.
The metal, which reached its lowest since late December on Tuesday at $1,265.90, is up 0.5 percent so far this week, and is poised for its first weekly gain since March 22.
U.S. gold futures edged up 0.3 percent to $1,282.30.
“We have seen a pretty strong recovery after a dip following the GDP data. The dollar index is turning weaker (helping gold),” said Jim Wyckoff, senior analyst with Kitco metals.
“Also, there seems to be a bit of short covering as we are heading in to the weekend and some technical buying.”
The dollar fell to a session low against a basket of currencies, after data showed that while U.S. growth accelerated in the first quarter, the jump was driven by trade and the largest accumulation of unsold goods since 2015, temporary factors that are likely to reverse in the coming quarters.
Even strong data out of the U.S. was unlikely to change the Federal Reserve’s monetary strategy, analysts said.
According to a Reuters poll, major central banks are done tightening policy as the global growth outlook has softened across developed and emerging economies, with scant prospects for a surge in inflation.
The view is supported by a recent slashing of its growth outlook by the Bank of Canada and a disclosure from the Bank of Japan that it will keep interest rates super-low for at least one more year.
“Despite a signiﬁcant drop in long-term real rates, gold prices have remained ﬂat year-to-date as recession fears have receded since late last year,” Goldman Sachs said in a note.
Central bank gold purchases have been running strong this year, which could support prices, the bank said.
While gold has fallen nearly 5 percent from a peak in February, bullion’s recovery from this week’s four-month low is painting a neutral picture in technical charts.
Gold looks neutral in a $1,274-$1,284 range, and an escape could suggest a direction, said Reuters technical analyst Wang Tao.
Among other precious metals, silver was up 0.2 percent at $15.01 per ounce.
Platinum rose 0.7 percent to $888.46, while palladium was up 1 percent at $1,427.71 per ounce. (Reporting by Nallur Sethuraman in Bengaluru; Editing by Jan Harvey and Elaine Hardcastle)