- Spot gold rose 0.3% to $1,869.51 per ounce by 0339 GMT.
- U.S. gold futures were 0.4% higher at $1,869.30.
- The dollar index held steady near a one-week high hit on Wednesday.
Gold prices edged higher on Thursday, after dropping over 1% in the previous session, as concerns over the economic fallout from surging Covid-19 cases outweighed positive vaccine news.
Spot gold rose 0.3% to $1,869.51 per ounce by 0339 GMT.
U.S. gold futures were 0.4% higher at $1,869.30.
"Gold traders are trying to strike a balance between a positive vaccine news versus a rising number of coronavirus cases around the globe," said Margaret Yang, a strategist with DailyFx, which covers currency, commodity and index trading.
Although the vaccine may affect the medium- to long-term trend of gold prices, monetary and fiscal stimulus are needed in the near-term to shelter the global economy, Yang said.
Gold tends to benefit from widespread stimulus measures from central banks because it is considered a hedge against inflation and currency debasement.
Risk appetite has been boosted by hopes of a successful vaccine, but analysts say it may take a long time before one becomes publicly available.
"The reality is we are just holding above the support levels between $1,850 and $1,860 and a breach there would introduce some pretty serious downside potential," said Michael McCarthy, chief strategist at CMC Markets.
The dollar index held steady near a one-week high hit on Wednesday.