* Several U.S. economic indicators due Thursday
* SPDR Gold holdings down over 12 pct since November
* Spot gold neutral in $1,121-$1,137 range -technicals
* Palladium down for the 7th straight session (Recasts, adds comment, updates prices)
By Swati Verma
BENGALURU, Dec 22 (Reuters) - Gold fluttered in a narrow range on Thursday in muted trading ahead of the holidays, with market participants now waiting for a bunch of U.S. economic data due later in the day.
The United States will release a third revision of U.S. third quarter gross domestic product along with durable goods orders for November, and weekly initial jobless claims.
The Federal Reserve, which hiked U.S. interest rates last week, signaled three more increases next year compared with its previous projection of two.
Strong economic data could prompt the Fed to raise rates sooner than later, pressuring gold prices as higher rates lower demand for the non-interest-paying bullion, which is priced in dollars.
Spot gold XAU= was steady at $1,131.76 an ounce by 0720 GMT.
U.S. gold futures GCcv1 were little changed at $1,133.50 per ounce.
"The market is in holiday mood already and we have very few trading days before the new year. It is all going to be quiet as the investors will be holding very thin margins," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.
The dollar index .DXY slipped 0.1 percent to 102.890. It reached 103.65 on Tuesday, the highest since December 2002. USD/
"The dollar is very strong and gold is going to be under pressure till Donald Trump takes over the U.S. presidency and the focus will shift to how his polices are unfolding," said Leung.
Holdings of the SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, continued to fall on Wednesday, losing 0.43 percent to hit 824.54 tonnes. Holdings are down over 12 percent since November. GOL/ETF
"A lot of ETF buyers got in at unsatisfactory levels. Clearly Trump's win was not expected by the market and the rise in U.S. yields put further pressure on gold," said Jeffrey Halley, senior market analyst at OANDA. US/
"A break below $1,100 will see another round of big liquidations."
Spot gold looks neutral in a range of $1,121-$1,137 per ounce, and an escape could indicate a direction, according to Wang Tao, Reuters analyst for commodities technicals. Christmas only a few days away we expect business and liquidity to further dry up into today and tomorrow and remain quiet through to the new year," said Alex Thorndike, senior precious metals dealer at MKS PAMP Group.
Silver XAG= slipped 0.3 percent to $15.89 an ounce, while platinum XPT= was down 0.2 percent at $913.50.
Palladium XPD= fell for the seventh straight session, down 0.6 percent at $653.75.