SINGAPORE: Gold prices rose in Asian trade on Thursday, aided by a weaker dollar, as investors bet that grim US jobs data and surging Covid-19 cases worldwide would spur authorities to announce further stimulus measures. Spot gold rose 0.5% to $1,815.30 per ounce by 0748 GMT. US gold futures were up 0.4% at $1,812.70.
"We've seen risk sentiment improve because of the optimism over vaccines and those were the headwinds for gold," said Harshal Barot, a senior research consultant for South Asia at Metals Focus.
"But since the dollar continues to weaken, gold prices are finding a little bit of support."
Barot said gold would find support at $1,795 per ounce and likely trade sideways in the near-term, until a "convincing" break above $1,850.
"The vaccine narrative has watered down gold's appeal immensely and it will continue too until we finally move into an inflationary world," said Stephen Innes, chief global market strategist at financial services firm Axi.
US Federal Reserve policymakers discussed how the central bank's asset purchases could be adjusted to provide more support to markets in the minutes to its Nov. 4 to 5 meeting. Continued accommodative central bank policy, given the widespread unavailability of a vaccine until the second half of 2021 and dollar weakness means gold is well supported, ANZ said in a note, adding it maintains its 12-month price target of $2,100 per ounce.