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 $833 per ounce in early trading on needs for cash after grim U.S. jobs data renewed worries about the world's biggest economy and sent equities sharply lower.
Tokyo's Nikkei share average fell more than 2 percent, after U.S. 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.
As of 0307 GMT, spot gold stood at $845 per ounce, up 0.3 percent from New York's notional close of $842.20. On Wednesday, gold dropped nearly 3 percent.
"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 Co's financial and economic research center.
"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 $900 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.
The euro was down 0.5 percent at $1.3589 on Thursday, having touched a one-month low of $1.3312 earlier this week.
Oil prices firmed on Thursday, but stayed below $43 per barrel after tumbling 12 percent on Wednesday, when a U.S. government report showed crude inventories rose much more than expected in the world's top energy consumer.
COMEX gold futures were firmer in Asia after falling 2.8 percent on Wednesday. U.S. gold futures for February delivery stood at $846.1 per ounce, up $4.4 or 0.5 percent 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 2,534 yen.
Cash platinum edged up to $974 an ounce from New York's notional close of $972.50.
On Wednesday, it briefly topped the $1,000 mark for the first time since October 15, possibly marking an end to the technical correction since late last year's sell-off.
Cash palladium eased to $194 an ounce from $195 and silver slipped 0.5 percent to $10.96 an ounce.
