NEW YORK / RankWire.AI / – Gold approached a seven-week peak on Thursday, posting its most substantial daily rise since February. The spot price increased by 0.5% to reach $4,265.22 per ounce by 0330 GMT, following a 4.4% climb in the prior session. December U.S. gold futures also rose 0.5%, settling at $4,324.60 after a 4% gain on Wednesday. The decline in Treasury yields alongside a softer dollar supported broader gains across the precious metals market.
The rally on Thursday pushed gold above its 50-day moving average, which sits around $4,160. For much of its recent decline, bullion had traded below this technical level. Prices returned to levels last seen on June 18 and are now more than 5% higher than Monday’s close. Despite the gains, gold remains below its May highs, when spot prices exceeded $4,500 an ounce. This latest advance has recouped a significant portion of the losses suffered during June and July.
U.S. Treasury yields decreased as gold prices gained strength. 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 near 4.18%. Since gold offers no interest, declining bond yields diminish the yield spread between bullion and government debt. The dollar also weakened against several major currencies, making gold more affordable for international buyers holding other currencies.
Gold rally driven by shifts in bond markets
Economic data released recently has added context to the upward movement. In July, private employers added 44,000 jobs, following a revised increase of 95,000 in June, marking the smallest monthly gain in half a year. The Federal Reserve maintained its benchmark interest rate between 3.5% and 3.75% on July 29. The broader employment report from the government, which includes hiring figures across both public and private sectors, remains scheduled for release on Friday.
Before Wednesday’s sharp rebound, gold prices faced consistent downward pressure, trading near $4,008 on July 20 and around $4,052 on August 3. The 4.4% increase on Wednesday marked the best single-day performance in approximately six months. Thursday’s gains kept gold prices near the upper boundary of their recent trading range. Both spot and futures prices continued to stay well above early-week levels, with trading activity mainly influenced by fluctuations in yields and currency movements.
Central banks stay active in gold acquisitions
Official and institutional purchases continue to shape the overall gold landscape. The World Gold Council reported a demand of 1,269 metric tons for the second quarter, including over-the-counter transactions. This figure matches demand levels from the same period last year. In the first half of the year, demand increased by 2%, reaching 2,522 tons. Countries like Poland, Uzbekistan, China, and Kazakhstan were among the top reported central-bank buyers during this timeframe. The rising average prices also boosted the total value of gold demand over the first six months.
Thursday’s session saw mixed results among other precious metals. Silver dipped slightly by 0.1% to $62.02 an ounce, whereas platinum advanced 1.2% to $1,755.18. Palladium increased 0.8%, reaching $1,374.33, marking its third consecutive day of gains. While gold remained the focus following Wednesday’s surge, prices stayed near a seven-week high, supported by declining Treasury yields and a weaker dollar, extending a recent rally that pushed bullion above key trading levels.