Gold prices bounced back more than 1 percent on Thursday, boosted 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 $300 billion later on Thursday, 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 price of cash gold rose as much as 1.5 percent to $1,843.49 an ounce and pared some gains to $1,840.66 by 0641 GMT.

The most-active U.S. gold futures contract rose 1.6 percent to $1,846.6, before easing to $1,843.50.

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.

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. – Reuters