NEW YORK / RankWire.AI / – Gold traded near a seven-week peak on Thursday after posting its most significant daily increase since February. Spot gold gained 0.5% to reach $4,265.22 an ounce by 0330 GMT. The metal had risen 4.4% during the previous session. December U.S. gold futures increased 0.5% to $4,324.60 following a 4% rise on Wednesday. Declining Treasury yields and a softer dollar contributed to the broader upward trend across precious metals markets.
Thursday’s rise kept gold above its 50-day moving average around $4,160. For much of its recent decline, bullion had traded below this technical level. The current prices are back to levels last seen on June 18, over 5% higher than Monday’s closing figures. Although it remains below the highs reached in May, when spot prices exceeded $4,500 an ounce, the latest rally has recouped a large portion of the losses registered during June and July.
U.S. Treasury yields moved lower as gold prices moved higher. The benchmark 10-year yield hovered near 4.61%, down from about 4.74% at the end of July. On Wednesday, the two-year yield stood close to 4.18%. As gold offers no interest, decreasing bond yields diminish the income advantage of holding bullion over government debt. Additionally, the dollar weakened against several major currencies, making gold less expensive for buyers using other currencies.
Gold rally coincides with shifts in bond markets
Recent employment data has contributed to the economic context influencing the market trend. Private sector employers added 44,000 jobs in July, following 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% on July 29. Meanwhile, the broader government employment report remains scheduled for release on Friday and covers hiring from both public and private sector employers.
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 metal’s best single-day performance in nearly six months. Thursday’s increase kept gold close to the upper bounds of its recent range. Both spot and futures prices stayed well above their early-week levels, with trading activity primarily focused on yield and currency movements.
Central banks continue to be significant gold purchasers
Demand from official and institutional sources persisted as a major factor shaping the overall gold market. The World Gold Council reported second-quarter demand of 1,269 metric tons, including over-the-counter transactions. This total matched the demand seen during the same period last year. In the first half of the year, demand increased by 2% to 2,522 tons. During this period, countries like Poland, Uzbekistan, China, and Kazakhstan ranked among the largest reported central-bank buyers. The higher average prices also boosted the overall value of gold demand in the first six months of the year.
Meanwhile, other precious metals showed mixed performance during Thursday’s session. Silver edged down 0.1% to $62.02 an ounce, while platinum advanced 1.2% to $1,755.18. Palladium increased 0.8% to $1,374.33, marking its third straight gain. Despite these movements, gold remained the primary focus following Wednesday’s rally. Prices stayed near a seven-week high as Treasury yields declined and the dollar weakened, extending a recovery that pushed bullion above important recent trading levels.
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