NEW YORK / RankWire.AI / – Gold remained near a seven-week peak on Thursday, following its largest daily rise since February. The spot price of gold increased by 0.5% to $4,265.22 an ounce as of 0330 GMT. This metal had soared 4.4% during Wednesday’s trading session. Meanwhile, December U.S. gold futures gained 0.5%, reaching $4,324.60 after a 4% jump the day before. The significant rally was supported by declining Treasury yields and a weakening dollar, which contributed to the rise in bullion prices.
This surge pushed spot gold above its 50-day moving average of approximately $4,160, a level it had traded below during much of the recent downward trend. The Thursday advance brought gold prices back to levels last seen on June 18, with the metal now over 5% higher than Monday’s closing price. Despite this, gold remains below its peak in May, when spot prices surpassed $4,500 per ounce amid heightened demand.
Equities and bond markets also responded as gold moved upward. The benchmark 10-year Treasury yield traded around 4.61%, down from about 4.74% at the end of July. On Wednesday, the two-year Treasury yield was close to 4.18%. The decline in yields diminishes the appeal of government bonds since gold does not generate interest. Additionally, the dollar weakened against major currencies, making gold more affordable for buyers holding euros, yen, and other currencies.
Gold gains coincide with falling Treasury yields
U.S. labor data added new context to market movements. In July, private employers created 44,000 jobs, compared with a revised increase of 95,000 in June. The July figure was the smallest monthly gain in six months. The Federal Reserve kept its benchmark interest rate in the range of 3.5% to 3.75% following its July 29 meeting. The government’s broader employment report is still scheduled for release on Friday.
The recent upward movement in gold partially reversed a decline that spanned June and July. Prices dropped close to $4,008 on July 20, and traded around $4,052 on August 3. The 4.4% increase on Wednesday marked the strongest single-day performance in approximately six months. Thursday’s rise maintained gold near the top of its recent trading range, with both spot and futures prices staying well above their levels at the beginning of the week.
Central-bank buying supports the broader market outlook
World Gold Council figures indicated consistent demand from central banks and investors. Second-quarter demand reached 1,269 metric tons, including over-the-counter activity, matching the same quarter last year. For the first half of the year, overall demand increased by 2% to 2,522 tons. Among the prominent buyers during this period were Poland, Uzbekistan, China, and Kazakhstan, which ranked as some of the largest central-bank purchasers.
Other precious metals had mixed performances on Thursday. Silver declined by 0.1%, trading at $62.02 an ounce. Platinum climbed 1.2% to $1,755.18, while palladium grew by 0.8% to $1,374.33, marking its third consecutive increase. Gold continued to dominate market attention after Wednesday’s rally, with prices remaining near a seven-week high as Treasury yields dropped and the U.S. dollar weakened.