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 0.5% to $4,265.22 an ounce by 0330 GMT, after soaring 4.4% during Wednesday’s trading session. December U.S. gold futures also rose 0.5%, reaching $4,324.60 following a 4% climb the previous day. The sharp rise was supported by declining Treasury yields and a weakening dollar, which bolstered bullion prices.
The upward movement pushed spot gold above its 50-day moving average, which sits near $4,160. During the recent downturn, prices had traded below this level. Thursday’s increase brought gold prices back to levels last seen on June 18, surpassing Monday’s closing price by over 5%. Despite this recovery, the metal still remains below its peak in May, when spot prices exceeded $4,500 an ounce amid heightened demand.
As gold advanced, bond markets responded with declines. The benchmark 10-year Treasury yield traded close to 4.61%, down from about 4.74% at the end of July. Meanwhile, the two-year yield was near 4.18% on Wednesday. Lower yields tend to reduce the appeal of government bonds that pay interest, making gold more attractive. Additionally, the dollar weakened against major currencies, making bullion less expensive for buyers using euros, yen, and other currencies.
Falling Treasury yields accompany gold’s rise
U.S. labor data contributed new information to market sentiment. Private employers added 44,000 jobs in July, compared to a revised increase of 95,000 in June. The July figure represented the smallest monthly job 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 scheduled for release on Friday.
Gold’s recent upward move partially offset a decline that persisted through June and July. Spot prices dipped to around $4,008 on July 20 and traded near $4,052 on August 3. Wednesday’s 4.4% surge marked the strongest daily performance in approximately six months. The subsequent increase on Thursday kept gold near its recent trading high, with both spot prices and futures remaining well above their levels at the start of the week.
Demand from central banks supports the broader market
Overall demand data continued to show consistent buying from central banks and investors. The World Gold Council reported second-quarter demand of 1,269 metric tons, including over-the-counter transactions. This total matched the demand level recorded during the same quarter last year. For the first half of the year, demand increased by 2%, reaching 2,522 tons. Notable central bank purchases during this period came from Poland, Uzbekistan, China, and Kazakhstan.
Other precious metals experienced mixed trading results on Thursday. Silver declined slightly by 0.1% to $62.02 an ounce. Platinum rose by 1.2% to $1,755.18, while palladium gained 0.8% to $1,374.33. Palladium’s movement marked its third straight increase. Gold remained the primary focus after Wednesday’s sharp rise, with prices staying near a seven-week high amid falling Treasury yields and a weaker U.S. dollar.