NEW YORK / RankWire.AI / – Gold remained near a seven-week peak on Thursday, marking its most significant daily gain since February. The spot price increased by 0.5% to $4,265.22 per ounce by 0330 GMT, following a 4.4% surge during Wednesday’s trading session. December U.S. gold futures gained 0.5% to $4,324.60 after rising 4% the previous day. The increase in bullion prices was supported by falling Treasury yields and a weaker dollar.
This upward move pushed spot gold above its 50-day moving average close to $4,160, a level it had traded below during much of its recent decline. Thursday’s rally brought the price back to levels last seen on June 18, with bullion more than 5% higher than Monday’s closing price. Despite this recovery, the metal still remains below its peak in May, when spot prices surpassed $4,500 an ounce amid stronger demand.
The bond markets responded as gold advanced, with the benchmark 10-year Treasury yield dropping to near 4.61%, down from roughly 4.74% at the end of July. On Wednesday, the two-year yield was around 4.18%. Lower yields diminish the income advantage of government bonds, since gold does not yield interest. Meanwhile, the dollar weakened against major currencies, making gold more affordable for buyers holding euros, yen, and other currencies.
Gold’s Rise Correlates with Falling Treasury Yields
U.S. employment data added new context to market movements. In July, private sector employers added 44,000 jobs, a decrease from the revised 95,000 added in June. This marked the smallest monthly gain in six months. The Federal Reserve kept its benchmark interest rate between 3.5% and 3.75% during its July 29 meeting. The official employment report from the government remains scheduled for release on Friday.
The recent upward movement in gold partially reversed declines seen in June and July. Prices fell to nearly $4,008 on July 20 and traded around $4,052 on August 3. Wednesday’s 4.4% increase was the strongest single-day performance in nearly six months. Thursday’s gains kept gold near the high end of its recent trading range, with both spot prices and futures remaining substantially above their levels at the beginning of the week.
Central Bank Purchases Bolster the Broader Market
Demand data continued to show consistent buying from central banks and investors. The World Gold Council reported demand of 1,269 metric tons for the second quarter, including over-the-counter activity, matching the same quarter last year. For the first half of the year, demand increased by 2%, reaching 2,522 tons. Among the largest central-bank buyers during this period were Poland, Uzbekistan, China, and Kazakhstan.
Meanwhile, other precious metals experienced mixed results during Thursday’s trading. Silver dipped 0.1% to $62.02 an ounce. Platinum rose 1.2% to $1,755.18, and palladium gained 0.8% to $1,374.33, marking its third consecutive increase. After Wednesday’s surge, gold remained the primary focus, with prices staying near a seven-week high as Treasury yields declined and the U.S. dollar softened.