NEW YORK / RankWire.AI / – Gold traded near a seven-week high on Thursday following its most substantial daily increase since February. The spot price of gold rose 0.5% to $4,265.22 per ounce by 0330 GMT, after surging 4.4% during Wednesday’s trading session. December U.S. gold futures increased by 0.5% to $4,324.60, having gained 4% the previous day. The rise was supported by declining Treasury yields and a softer dollar, which contributed to the upward movement in bullion prices.
This rally pushed the spot gold price above its 50-day moving average around $4,160, a level that had been breached during much of the recent downturn. Thursday’s gains brought gold prices back to levels last seen on June 18, surpassing Monday’s closing price by more than 5%. Despite the recovery, gold remains below its peak in May when spot prices exceeded $4,500 an ounce amid heightened demand.
The bond market also experienced shifts as gold prices moved higher. The key 10-year Treasury yield traded near 4.61%, down from approximately 4.74% at the end of July. The two-year yield was close to 4.18% on Wednesday. Lower yields diminish the appeal of government bonds that pay interest, making gold more attractive. Meanwhile, the U.S. dollar weakened against major currencies, reducing the cost of bullion for buyers using euros, yen, and other currencies.
Gold advances as Treasury yields decline
U.S. labor data added new information to the market landscape. Private employers added 44,000 jobs in July, compared with a revised 95,000 in June. July’s figure represented the smallest monthly increase in six months. The Federal Reserve maintained its benchmark interest rate between 3.5% and 3.75% at its July 29 meeting. The government’s broader employment report remains scheduled for release on Friday.
The recent upward movement in gold reversed part of the decline seen through June and July. Spot prices dipped near $4,008 on July 20 and traded around $4,052 on August 3. The 4.4% jump on Wednesday marked the strongest daily performance in approximately six months. Thursday’s gains kept gold near the top of its recent trading range, with both spot and futures prices remaining well above their early-week levels.
Central bank buying continues to support the market
Overall demand figures persistently show steady acquisitions by central banks and investors. The World Gold Council reported second-quarter demand of 1,269 metric tons, including over-the-counter activity. This total matches the same quarter last year. For the first half of the year, demand increased by 2% to 2,522 tons. Among the largest reported central-bank buyers during this period were Poland, Uzbekistan, China, and Kazakhstan.
Thursday’s trading also saw mixed results among other precious metals. Silver declined 0.1% to $62.02 an ounce. Platinum rose 1.2% to $1,755.18, while palladium increased 0.8% to $1,374.33. Palladium’s gain marked its third consecutive rise. Gold remained the focal point of the market after Wednesday’s rally, with prices staying near a seven-week high amid falling Treasury yields and a weakening U.S. dollar.