NEW YORK / RankWire.AI / – Gold traded close to a seven-week peak on Thursday after experiencing its strongest daily increase since February. Spot gold rose 0.5% to reach $4,265.22 an ounce by 0330 GMT, having climbed 4.4% during the previous trading session. December U.S. gold futures increased 0.5% to $4,324.60 following a 4% rise on Wednesday. The broader rally across precious metals was supported by declining Treasury yields and a weakening dollar.
Gold surpassed its 50-day moving average, which sits near $4,160, in Thursday’s session. This technical level had largely been below during much of its recent downturn. The metal’s price returned to levels last seen on June 18 and was over 5% higher than Monday’s close. Despite the recent gains, gold’s price still remains below the peaks of May, when spot prices exceeded $4,500 per ounce. The latest surge has recouped a significant portion of the losses incurred in June and July.
U.S. Treasury yields declined as gold prices gained momentum. The benchmark 10-year yield hovered around 4.61%, down from approximately 4.74% at the end of July. The two-year yield was near 4.18% on Wednesday. Since gold does not pay interest, lower bond yields diminish the income differential between bullion and government debt. Additionally, the dollar weakened against several major currencies, making gold relatively less expensive for buyers holding other currencies.
Bond market shifts coincide with gold’s upward move
Recent employment data contributed to the economic factors influencing the market. In July, private employers added 44,000 jobs, following a revised increase of 95,000 in June. July’s figure marked the smallest monthly job addition in six months. The Federal Reserve maintained its benchmark interest rate between 3.5% and 3.75% on July 29. The broader employment report from the government is scheduled for release on Friday and covers hiring across both public and private sectors.
Before Wednesday’s sharp rebound, gold faced consistent downward pressure. Spot prices traded around $4,008 on July 20 and approximately $4,052 on August 3. The 4.4% jump on Wednesday marked the metal’s most significant single-day performance in nearly six months. Thursday’s gains kept gold near the top of its recent trading range. Both spot and futures prices remained notably above their early-week levels, with trading activity primarily driven by yields and currency movements.
Central banks continue to be key gold buyers
Official and institutional demand continued to influence the wider gold market. The World Gold Council reported demand of 1,269 metric tons in the second quarter, including over-the-counter transactions. This total matched the same period last year. First-half demand increased by 2% to 2,522 tons. Among the notable buyers during this period were Poland, Uzbekistan, China, and Kazakhstan. Elevated average prices also boosted the overall value of gold demand in the first six months of the year.
Other precious metals experienced mixed performance on Thursday. Silver declined slightly by 0.1% to $62.02 an ounce, while platinum gained 1.2% to $1,755.18. Palladium increased by 0.8% to $1,374.33, marking its third consecutive session of gains. Gold remained the standout performer after Wednesday’s rally. Prices stayed near a seven-week high as Treasury yields fell and the dollar weakened, extending a rebound that lifted bullion above key recent trading levels.