NEW YORK / RankWire.AI / – Gold remained near a seven-week peak on Thursday following its most significant daily increase since February, with spot gold rising 0.5% to $4,265.22 an ounce by 0330 GMT, after surging 4.4% during Wednesday’s session. December U.S. gold futures increased 0.5% to $4,324.60, having climbed 4% the previous day. The rally was supported by falling Treasury yields and a weakening dollar, which helped propel bullion prices higher.
This upward movement pushed spot gold above its 50-day moving average near $4,160, a level it traded below during much of the recent decline, with Thursday’s gains bringing prices back to levels last seen on June 18. Gold now stands more than 5% above Monday’s closing price, although it remains below its peak in May when spot prices surpassed $4,500 an ounce amid increased demand.
Bond markets also responded as gold advanced, with the benchmark 10-year Treasury yield trading near 4.61%, down from approximately 4.74% at the end of July, while the two-year yield was around 4.18% on Wednesday. Lower yields diminish the income advantage of government bonds since gold does not pay interest, and a weaker dollar against major currencies has made bullion cheaper for buyers using euros, yen, and other currencies.
Treasury yields decline as gold gains
U.S. labor data added fresh context to the markets, with private employers creating 44,000 jobs in July, compared to a revised 95,000 in June, marking the smallest monthly increase in six months. The Federal Reserve maintained its benchmark interest rate between 3.5% and 3.75% at its July 29 meeting, while the government’s broader employment report remains scheduled for release on Friday.
Gold’s recent rise partly reversed a decline that spanned June and July, when spot prices fell near $4,008 on July 20 and hovered around $4,052 on August 3, with Wednesday’s 4.4% jump representing its strongest one-day performance in about six months. Thursday’s increase kept gold close to its recent trading range’s high, with both spot prices and futures remaining significantly above their levels at the start of the week.
Central Bank Buying Keeps Market Supportive
World Gold Council data showed steady buying from central banks and investors, with second-quarter demand reaching 1,269 metric tons, including over-the-counter activity, matching the same period last year. For the first half, demand increased 2% to 2,522 tons, with Poland, Uzbekistan, China, and Kazakhstan among the leading central-bank buyers during this period.
Meanwhile, other precious metals had mixed performances on Thursday. Silver dropped 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 straight increase. Despite these movements, gold remained the primary focus after Wednesday’s surge, with prices staying near a seven-week high as Treasury yields fell and the U.S. dollar weakened.