Gold prices have rebounded more than 1 percent this morning, the yellow metal was snapped up by bargain-hunters after the previous session’s fall of 3 percent, ahead of a speech by U.S. President Barack Obama that could allay recession fears. Obama will lay out a jobs package worth more than $300billion later on today, after data showed the world’s top economy added no new jobs in August. Gold prices dipped to below $1,800 in the previous session, triggering a wave of buying during Asian hours.

The uncertainties around global economic growth have propelled gold to consecutive record highs since July, and are expected to underpin sentiment for the metal until investors are convinced the danger of recession is past. Gold remains the number one safe haven in times of economic uncertainty.

Obama’s speech may offer hopes of improving the labour market, but the uptick in risk appetite is likely to be temporary.”All his package may do is lessen the fallout of recent knocks to confidence from the euro zone sovereign debt crisis and U.S. ratings downgrade,” said David Thurtell, a Citigroup analyst. Buyers rushed to the physical gold market after prices dropped as much as 6.6 percent in the past two sessions from a record high of $1,920.3 hit on Tuesday. – Bloomberg