NEW YORK / RankWire.AI / – Gold hovered near a seven-week peak on Thursday following its most significant daily rise since February. The spot price of gold increased by 0.5% to $4,265.22 per ounce by 0330 GMT, after soaring 4.4% during Wednesday’s session. Meanwhile, December U.S. gold futures also gained 0.5%, reaching $4,324.60, following a 4% jump the previous day. The sharp rise in bullion prices coincided with declining Treasury yields and a weaker dollar, which supported the rally.
This upward movement pushed spot gold above its 50-day moving average close to $4,160. During much of the recent downturn, prices traded below this level. Thursday’s gains restored gold to levels last seen on June 18, lifting it more than 5% above Monday’s closing price. Despite this, gold remained below its peak in May when spot prices surpassed $4,500 an ounce amid heightened demand.
Bond markets also experienced adjustments as gold advanced. The benchmark 10-year Treasury yield traded near 4.61%, down from around 4.74% at the end of July. The two-year yield was close to 4.18% on Wednesday. The decline in yields diminishes the appeal of government bonds that pay interest, benefiting gold as an alternative investment. Additionally, the dollar weakened against major currencies, making bullion less costly for buyers using euros, yen, and other currencies.
Declining Treasury yields accompany gold’s upward momentum
U.S. labor data added fresh context to the market outlook. Private employers created 44,000 jobs in July, a decrease from the revised 95,000 increase in June. This July figure marked 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 remains scheduled for release on Friday.
The recent upward movement in gold partially reversed a decline that persisted through June and July. On July 20, spot prices fell near $4,008, and by August 3, they traded around $4,052. The 4.4% jump on Wednesday marked the strongest single-day performance in nearly six months. Thursday’s rise kept gold near the top of its recent trading range, with both spot prices and futures remaining significantly above the levels seen at the start of the week.
Central-bank buying continues to bolster overall demand
Demand figures from broader markets indicated consistent purchasing from central banks and investors. The World Gold Council reported that second-quarter demand totaled 1,269 metric tons, including over-the-counter transactions. This level matched the demand recorded during the same quarter last year. For the first half of the year, demand increased by 2%, reaching 2,522 tons. Major central-bank buyers during this period included Poland, Uzbekistan, China, and Kazakhstan.
In Thursday’s trading, other precious metals showed mixed results. Silver decreased slightly by 0.1%, closing at $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 consecutive increase. Gold remained the primary focus after Wednesday’s surge, maintaining near a seven-week high as Treasury yields declined and the U.S. dollar weakened.