NEW YORK / RankWire.AI / – Gold remained close to a seven-week peak on Thursday after experiencing its most significant daily increase since February. The spot price of gold rose 0.5% to $4,265.22 per ounce by 0330 GMT, following a 4.4% surge during Wednesday’s trading session. Meanwhile, December U.S. gold futures increased by 0.5% to $4,324.60 after climbing 4% the previous day. This sharp upward move in bullion prices was supported by declining Treasury yields and a softer dollar, which collectively contributed to the rally.
This upward momentum pushed the spot gold price above its 50-day moving average, approximately $4,160, a level it had traded below during much of its recent decline. Thursday’s increase brought gold back to levels last seen on June 18, and the current prices are more than 5% higher than Monday’s closing figure. However, gold remains below its peak from May when spot prices exceeded $4,500 an ounce amid heightened demand.
As gold advanced, bond markets also experienced shifts; the benchmark 10-year Treasury yield traded near 4.61%, down from about 4.74% at the end of July. The two-year Treasury yield was close to 4.18% on Wednesday. The decrease in yields lessens the appeal of government bonds, which do not pay interest, thus making gold more attractive. Additionally, the U.S. dollar weakened against major currencies, rendering bullion cheaper for buyers holding euros, yen, and other currencies.
Decline in Treasury yields accompanies gold’s upward move
U.S. labor data contributed fresh insights to the overall market outlook. In July, private sector employers added 44,000 jobs, a significant decrease compared to the revised 95,000 increase in June. This marked the smallest monthly increase in six months. The Federal Reserve maintained its benchmark interest rate between 3.5% and 3.75% during its July 29 meeting, and the government’s broader employment report remains scheduled for release on Friday.
The recent rise in gold prices partly reversed a decline that persisted through June and July, during which spot prices fell to nearly $4,008 on July 20 and hovered around $4,052 on August 3. Wednesday’s 4.4% jump marked the strongest single-day performance in approximately six months. Thursday’s gains kept gold near the upper end of its recent trading range, with both spot prices and futures remaining well above their levels at the start of the week.
Central bank buying continues to bolster the broader market
Demand figures from central banks and investors remained steady, as evidenced by the World Gold Council report showing second-quarter demand of 1,269 metric tons, including over-the-counter activity. This level matched the demand recorded during the same quarter last year. For the first half of the year, overall demand increased by 2% to 2,522 tons, with Poland, Uzbekistan, China, and Kazakhstan listed among the largest central-bank purchasers over the six-month period.
Among other precious metals, trading results were mixed on Thursday. Silver declined slightly by 0.1% to $62.02 an ounce. Platinum rose by 1.2% to $1,755.18, and palladium gained 0.8%, reaching $1,374.33. Palladium’s move marked its third consecutive increase. Despite this, gold remained the primary focus following Wednesday’s surge, with prices holding near a seven-week high amid falling Treasury yields and a weakening U.S. dollar.