NEW YORK / RankWire.AI / – Gold remained near a seven-week peak on Thursday, driven by its most significant daily increase since February. Spot gold increased by 0.5% to $4,265.22 an ounce as of 0330 GMT. The precious metal had surged 4.4% during Wednesday’s trading session. Meanwhile, December U.S. gold futures climbed 0.5% to $4,324.60 after a 4% rise the day before. The sharp climb was supported by falling Treasury yields and a weakening dollar.
Early Thursday, the rally pushed spot gold above its 50-day moving average, which is near $4,160, a level it traded below during much of the recent decline. The increase brought gold prices back to levels last seen on June 18, standing more than 5% above Monday’s closing figures. Although rallying, gold still remains below its peak from May, when spot prices surpassed $4,500 an ounce amid heightened demand.
Across bond markets, movements coincided with the rise in gold prices. The benchmark 10-year Treasury yield traded around 4.61%, down from approximately 4.74% at the end of July. On Wednesday, the two-year yield was near 4.18%. Lower yields diminish the income advantage of government debt, given that gold does not pay interest. The dollar also weakened against major currencies, making gold less expensive for buyers using euros, yen, and other currencies.
Gold gains coincide with declining Treasury yields
U.S. labor data added fresh context to the market outlook. In July, private employers created 44,000 jobs, a decrease from the revised 95,000 added in June. This was the smallest monthly gain in six months. The Federal Reserve maintained its benchmark interest rate between 3.5% and 3.75% during its July 29 meeting. The government’s broader employment report is still expected on Friday.
Gold’s recent upward move partially reversed its decline seen during June and July. Spot prices had dipped near $4,008 on July 20 and traded around $4,052 by August 3. Wednesday’s 4.4% jump marked the strongest one-day increase in about six months. Thursday’s gains kept gold close to the high end of its recent trading range, with both spot prices and futures remaining well above their early-week levels.
Central-bank buying activity bolsters broader market sentiment
World Gold Council figures for the second quarter showed sustained demand from central banks and investors. The demand totaled 1,269 metric tons, including over-the-counter transactions, matching the same quarter last year. For the first half, demand increased 2% to 2,522 tons. During this period, Poland, Uzbekistan, China, and Kazakhstan emerged among the top central-bank purchasers.
Meanwhile, other precious metals displayed mixed movements on Thursday. Silver edged down 0.1% to $62.02 an ounce. Platinum rose 1.2% to $1,755.18, and palladium increased 0.8% to $1,374.33, marking its third straight daily gain. Gold continued to draw attention after Wednesday’s sharp rise, remaining close to a seven-week high amid falling Treasury yields and a softer U.S. dollar.