Gold prices rebounded slightly on Thursday following a drop of 3 percent in the previous session, as sharply lower prices attract bargain hunters, while improved risk appetite is likely to cap gains.
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20.00 (+1.1%) 
]gained 0.4 percent to $1,823.79 an ounce by 0027 GMT, after suffering a drop of 3 percent on Wednesday in its most volatile day in two weeks, with a trading band of more than $80.U.S. gold [GCCV1 1833.00 15.40 (+0.85%) ]rose 0.6 percent to $1,827.70.
15.40 (+0.85%) ]rose 0.6 percent to $1,827.70. Gold fell below $1,800 in the previous session, after risk appetite surged and investors abandoned gold for the stock market, as Germany's top court rejected lawsuits aimed at blocking German participation in emergency loan packages, but gave its parliament more say in bailouts.
Adding to the risk appetite, Germany's industrial output jumped unexpectedly in July, offering hopes that Europe's largest economy may avoid recession.
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The sharp sell-off offered an opportunity for bargain hunters in Asia, as gold's long-term appeal as safe haven and inflation hedge remains intact.
Investors will be watching a speech by U.S. President Barack Obama on job creation to Congress, after data showed the economy added no new jobs in August.
Holdings of SPDR Gold Trust [GLD 177.08 
-5.82 (-3.18%) ] and iShares Silver Trust [SLV 40.53 -0.52 (-1.27%) ] remained unchanged.
Wall Street bounced more than 2 percent on Wednesday, reversing three days of losses after Germany's top court smoothed the way for Berlin's participation in bailouts that could ease Europe's debt crisis.
-5.82 (-3.18%) ] and iShares Silver Trust [SLV 40.53 -0.52 (-1.27%) ] remained unchanged.Wall Street bounced more than 2 percent on Wednesday, reversing three days of losses after Germany's top court smoothed the way for Berlin's participation in bailouts that could ease Europe's debt crisis.
The dollar index [.DXY 75.61 0.14 (+0.19%) ] held steady on Thursday, after easing fears of the euro zone's debt crisis drove up the euro and weighed on the greenback in the previous session.
0.14 (+0.19%) ] held steady on Thursday, after easing fears of the euro zone's debt crisis drove up the euro and weighed on the greenback in the previous session.Copyright 2011 Thomson Reuters. Click for restrictions.
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