Gold edged lower on Thursday as investors booked profits from sharp gains in the previous session, but prices held above the $1,700 an ounce level on the promise of more US stimulus measures to ease the economic blow from the coronavirus crisis.
Spot gold fell 0.2% to $1,710.78 per ounce by 0520 GMT, after Wednesday's more than 1.5% jump. US gold futures were little changed at $1,738.90 per ounce.
"The market is probably more inclined to take profit on gold, simply because they are nearing the highs of the recent range," said Stephen Innes, chief market strategist at financial services firm AxiCorp.
"The US kicked in more stimulus, which is really positive for gold because it increases fiscal deficits in the country. And with these low interest rates staying low, this is just a welcoming relief."
"In a nutshell, gold investors are more impressed with the bullish aspect of more fiscal spending than with the bearish impact of higher equities," Innes said.
Meanwhile, SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.9% to 1,042.46 tonnes on Wednesday.
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