NEW YORK / RankWire.AI / – Gold approached a seven-week peak on Thursday, marking its most significant daily rise since February. Spot gold increased by 0.5% to reach $4,265.22 per ounce by 0330 GMT, following a 4.4% gain in the prior session. December U.S. gold futures also rose 0.5%, reaching $4,324.60 after climbing 4% on Wednesday. The decline in Treasury yields and a weakening dollar helped support broader gains across precious metals markets.
The move on Thursday kept gold above its 50-day moving average near $4,160. During much of its recent decline, bullion had stayed below this technical level. Prices have now returned to levels last seen on June 18, surpassing Monday’s close by more than 5%. Although it remains below the highs recorded in May when spot prices exceeded $4,500 an ounce, this latest rally has recouped a large portion of the losses experienced in June and July.
U.S. Treasury yields declined as gold prices gained. The benchmark 10-year yield stayed near 4.61%, down from about 4.74% at the end of July. On Wednesday, the two-year yield was around 4.18%. Since gold does not pay interest, lower bond yields reduce the income gap between bullion and government debt. Meanwhile, the dollar weakened against several major currencies, making gold less expensive for buyers holding other currencies.
Gold rally accompanied by shifts in bond markets
Recent employment figures added context to the economic environment influencing the market move. In July, private employers created 44,000 jobs, following a revised increase of 95,000 in June. The July increase was the smallest 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 still due on Friday and covers hiring across both public and private sectors.
Before Wednesday’s sharp rebound, gold faced consistent downward pressure. Spot prices hovered near $4,008 on July 20 and around $4,052 on August 3. The 4.4% surge on Wednesday marked the best single-day performance in roughly six months. Thursday’s gains kept the metal near the top of its recent trading range. Both spot and futures prices remained significantly above their levels at the start of the week, with trading activity focusing on yields and currency movements.
Central banks continue to be key gold purchasers
Official and institutional demand continued to influence the overall gold market. The World Gold Council reported a second-quarter demand of 1,269 metric tons, including over-the-counter transactions. This total matched the demand from the same period last year. In the first half of the year, demand increased by 2% to 2,522 tons. Among the largest reported central bank buyers during this period were Poland, Uzbekistan, China, and Kazakhstan. Higher average prices during these months also contributed to the increased total value of gold demand over the first six months.
Thursday’s session saw mixed movements across other precious metals. Silver dipped slightly by 0.1% to $62.02 an ounce, while platinum gained 1.2% to $1,755.18. Palladium increased by 0.8%, reaching $1,374.33, marking its third consecutive rise. Gold remained the top performer after Wednesday’s surge. Prices held near a seven-week high as Treasury yields declined and the dollar softened, extending a rebound that pushed bullion above key recent trading levels.