Gold firmed on Thursday, recovering from a two-week low as continued worries about conflict in the Middle East and financial market instability helped spur buying on dips.
Gold briefly hit a new two-week low of $US833 per ounce in early trading on needs for cash after grim US jobs data renewed worries about the world's biggest economy and sent equities sharply lower.
Tokyo's Nikkei share average fell more than 2%, after US stocks posted their biggest decline in over a month on the data.
But the metal has bounced back as continued strife in the Gaza Strip supports safe-haven buying and unstable global financial markets prompts buying on dips, analysts said.
In Asian trade, spot gold stood at $US845 per ounce, up 0.3% from New York's notional close of $842.20. On Wednesday, gold dropped nearly 3%.
"Gold's steep fall yesterday does not warrant a change in its trend. Gold rather looks directionless for now,'' said Tatsufumi Okoshi, a senior economist at Nomura Securities' financial and economic research centre.
"Having said that, it will likely stay at the high end of the recent range given financial market instability and ... as geopolitical concerns remain,'' he said.
Gold hit a three-month high near $US900 on December 29, when Israeli air strikes in Gaza pushed up oil prices on fears of supply disruptions, and has since hovered below that level.
But the dollar's recent rally against the euro has curbed gains in gold.
Comex gold futures were firmer in Asia after falling 2.8% on Wednesday. US gold futures for February delivery stood at $US846.1 per ounce, up $US4.4 or 0.5% from Wednesday's settlement on the Comex division of the New York Mercantile Exchange.
The December gold contract on the Tokyo Commodity Exchange fell 65 yen per gram to 2534 yen.
