Gold prices edged up on Thursday from the near 4-month low touched early in the session after data showing euro zone businesses were under pressure brought concerns about global growth back to the fore.
Spot gold was up 0.2 percent at $1,275.71 per ounce by 0947 GMT, having fallen to its lowest since Dec. 27 at $1,270.63 earlier in the session.
The metal has so far lost about 1 percent in the holiday-shortened week, on track for a fourth straight weekly decline. Most markets are closed for Good Friday on April 19.
Eurozone businesses started this quarter on the back foot, with growth unexpectedly slowing again, surveys showed.
"The figures for the euro zone were mixed. The market clearly does not know what to do next. But the European Central Bank is going to be on hold, which is offering some support for gold," Quantitative Commodity Research analyst Peter Fertig said.
Gold, as a non-yielding asset, tends to suffer when central banks raise interest rates.
"The stock markets are down and that's compensating a bit in gold," Fertig added. "Uncertainty about the economic situation is also supporting the gold market a little bit."
Market participants will also keep a close eye on US retail sales data later in the day for clues on the country's economic health.
Meanwhile, holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, stood at 752.86 tonnes on Wednesday, a marginal increase from the previous day but still around their lowest levels since Oct. 27.
"While holdings in SPDR Gold shares have dropped to a six-month low, overall gold holdings in physically-backed ETFs have remained relatively consistent, suggesting macro asset allocators continue to maintain some exposure in the wider risk environment," BMO Capital Markets said in a research note.
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