2020.08.1319:00:00UTC+00Gold Prices Firm Above $1,900 On Weaker Dollar

Gold prices continued to rebound modestly on Thursday following the heavy selloff in the previous session as investors await the latest weekly U.S. jobless claims numbers for clues to economic recovery.

Spot gold rose 1.19 percent to $1,943.92 per ounce, after having fallen below $1,900 in choppy trade the previous day.

The U.S. recovery will be gradual until the pandemic is contained, three Federal Reserve officials said on Wednesday.

"The forecast for the U.S. economy this fall is quite uncertain, but my view is that the recent slowdown in economic activity that we have seen in high-frequency data is likely to continue," Boston Fed President Eric Rosengren said during an online event.

San Francisco Fed president Mary Daly and Dallas Fed President Robert Kaplan also voiced similar concerns amid a stalemate in Washington over a new coronavirus relief bill.

There's an atmosphere of uncertainty swirling around Congress as negotiations for the next stimulus package have stalled.

House Speaker Nancy Pelosi said Democrats and the Trump administration are "miles apart" on a new fiscal plan, with little prospect of any new negotiations bearing fruit in the near future.

Spot gold had its steepest sell-off in more than seven years on Tuesday on news about Russia registering the first vaccine against the coronavirus.