By Rujun Shen
SINGAPORE, Sept 8 (Reuters) - Gold prices rebounded slightly on Thursday following a drop of 3 percent in the previous session, as sharply lower prices attract bargain hunters, while improved risk appetite is likely to cap gains.
FUNDAMENTALS
* Spot gold gained 0.4 percent to $1,823.79 an ounce by 0027 GMT, after suffering a drop of 3 percent on Wednesday in its most volatile day in two weeks, with a trading band of more than $80.
* U.S. gold
* Gold fell below $1,800 in the previous session, after risk appetite surged and investors abandoned gold for the stock market, as Germany's top court rejected lawsuits aimed at blocking German participation in emergency loan packages, but gave its parliament more say in bailouts.
* Adding to the risk appetite, Germany's industrial output jumped unexpectedly in July, offering hopes that Europe's largest economy may avoid recession.
* The sharp sell-off offered an opportunity for bargain hunters in Asia, as gold's long-term appeal as safe haven and inflation hedge remains intact.
* Investors will be watching a speech by U.S. President Barack Obama on job creation to Congress, after data showed the economy added no new jobs in August.
* Holdings of SPDR Gold Trust and iShares Silver Trust remained unchanged.
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MARKET NEWS
* Wall Street bounced more than 2 percent on Wednesday, reversing three days of losses after Germany's top court smoothed the way for Berlin's participation in bailouts that could ease Europe's debt crisis.
* The dollar index held steady on Thursday, after easing fears of the euro zone's debt crisis drove up the euro and weighed on the greenback in the previous session.
DATA/EVENTS 1100 Britain BoE rate decision Sep 2011 1145 EZ ECB rate decision Sep 2011 1230 U.S. Initial jobless claims Weekly
PRICES Precious metals prices 0027 GMT Metal Last Change Pct chg YTD pct chg Volume Spot Gold 1823.79 7.33 +0.40 28.49 Spot Silver 41.54 0.02 +0.05 34.61 Spot Platinum 1831.99 16.54 +0.91 3.65 Spot Palladium 751.00 4.02 +0.54 -6.07 TOCOM Gold 4548.00 -25.00 -0.55 21.96 60841 TOCOM Platinum 4602.00 -12.00 -0.26 -2.00 4128 TOCOM Silver 103.10 0.50 +0.49 27.28 354 TOCOM Palladium 1893.00 13.00 +0.69 -9.73 133 COMEX GOLD DEC1 1827.70 10.10 +0.56 28.58 3556 COMEX SILVER DEC1 41.62 -0.01 -0.03 34.52 595 Euro/Dollar 1.4072 Dollar/Yen 77.38 TOCOM prices in yen per gram. Spot prices in $ per ounce. COMEX gold and silver contracts show the most active months (Editing by Clarence Fernandez)