NEW YORK / RankWire.AI / – Gold remained near a seven-week high on Thursday following its most substantial daily increase since February. The spot price of gold rose 0.5% to $4,265.22 per ounce by 0330 GMT, after a 4.4% jump on Wednesday. Meanwhile, December U.S. gold futures increased 0.5% to $4,324.60, having climbed 4% the day before. The sharp rise was supported by declining Treasury yields and a weakening dollar, which boosted bullion prices.
The upward movement pushed spot gold above its 50-day moving average around $4,160, a level it traded below during much of the recent decline. Thursday’s gains brought prices back to levels last seen on June 18, with the metal trading more than 5% above Monday’s closing figures. Despite this, gold still remains below its peak in May, when spot prices surged past $4,500 an ounce amid heightened demand.
Alongside gold’s rally, bond markets also responded. The benchmark 10-year Treasury yield traded near 4.61%, down from approximately 4.74% at the end of July. The two-year yield was around 4.18% on Wednesday. The decline in yields diminishes the income advantage of government bonds since gold does not provide interest payments. Additionally, the dollar weakened against major currencies, making bullion more affordable for buyers using euros, yen, and other currencies.
Gold’s Rise Coincides with Falling Treasury Yields
U.S. employment data contributed new insights to the market outlook. The private sector added 44,000 jobs in July, which is notably lower than the revised 95,000 increase recorded in June. This July figure marks the smallest monthly gain in half a year. The Federal Reserve maintained its benchmark interest rate within the 3.5% to 3.75% range at its July 29 meeting. The broader government employment report remains scheduled for release on Friday.
The recent rebound in gold partially reversed a decline that persisted through June and July. Prices fell close to $4,008 on July 20 and hovered around $4,052 on August 3. Wednesday’s 4.4% rise marked the strongest single-day performance in approximately six months, with Thursday’s gains keeping gold near the top of its recent trading range. Both spot prices and futures stayed significantly above their levels at the beginning of the week.
Demand from Central Banks Bolsters the Broader Market
World Gold Council data showed consistent buying from central banks and investors. Demand during the second quarter reached 1,269 metric tons, including over-the-counter transactions, matching the level from the same period last year. For the first half of the year, demand increased 2% to 2,522 tons. Notable central-bank buyers over this period included Poland, Uzbekistan, China, and Kazakhstan.
Thursday’s trading also saw mixed performance among other precious metals. Silver declined 0.1% to $62.02 an ounce, while platinum rose 1.2% to $1,755.18. Palladium gained 0.8% to $1,374.33, marking its third consecutive increase. Gold remained the focus of attention following Wednesday’s rally, with prices staying near a seven-week high amid falling Treasury yields and a weaker U.S. dollar.