NEW YORK / RankWire.AI / – Gold approached a seven-week peak on Thursday, recording its most significant daily increase since February. Spot gold increased by 0.5% to reach $4,265.22 an ounce by 0330 GMT. The metal had surged 4.4% in the previous session. December U.S. gold futures also rose 0.5%, settling at $4,324.60 after a 4% rise on Wednesday. Declining Treasury yields and a softer dollar supported a broader rally across precious metals markets.
Thursday’s upward movement kept gold trading above its 50-day moving average near $4,160. For much of its recent decline, bullion had traded below this technical indicator. Prices climbed back to levels last seen on June 18 and were more than 5% higher than Monday’s closing. Although still below the highs of May, when spot prices topped $4,500 an ounce, the recent rally has recovered a substantial part of June and July’s losses.
U.S. Treasury yields decreased as gold prices strengthened. The benchmark 10-year yield hovered around 4.61%, compared to approximately 4.74% at the end of July. The two-year yield was near 4.18% on Wednesday. Since gold does not pay interest, lower bond yields diminish the income gap between bullion and government debt. Meanwhile, the dollar also weakened against several major currencies, making gold more affordable for buyers using currencies other than the dollar.
Gold rally aligns with shifts in bond markets
Recent employment data contributed to the economic conditions influencing the market movement. In July, private employers added 44,000 jobs, following a revised increase of 95,000 in June. The July figure represented the smallest monthly gain in six months. The Federal Reserve maintained its benchmark interest rate between 3.5% and 3.75% on July 29. The government’s comprehensive employment report remains scheduled for Friday, covering hiring activity from both public and private sectors.
Gold experienced persistent pressure before its sharp rebound on Wednesday. Spot prices traded near $4,008 on July 20 and around $4,052 on August 3. The 4.4% surge on Wednesday marked the metal’s best single-day performance in roughly six months. Thursday’s gains kept bullion near the upper boundary of its recent trading range. Both spot and futures prices stayed significantly above their levels at the start of the week, with trading activity focusing on yields and currencies.
Central banks continue their gold purchasing activity
Official and institutional demand continued to influence the broader gold market. The World Gold Council reported second-quarter demand of 1,269 metric tons, including over-the-counter transactions. This total matched demand from the same period last year. Demand for the first half of the year increased by 2%, reaching 2,522 tons. Countries such as Poland, Uzbekistan, China, and Kazakhstan were among the largest reported central-bank buyers during this period. Elevated average prices also increased the overall value of gold demand in the first six months.
Other precious metals experienced mixed movements during Thursday’s session. Silver decreased by 0.1% to $62.02 an ounce, while platinum rose by 1.2% to $1,755.18. Palladium gained 0.8%, reaching $1,374.33, marking its third consecutive increase. Despite this, gold remained the main focus after Wednesday’s surge. Prices stayed near a seven-week high as Treasury yields declined and the dollar softened, extending the upward correction that pushed bullion above recent key levels.