NEW YORK / RankWire.AI / – Gold approached a seven-week peak on Thursday, recording its largest daily increase since February. Spot gold increased by 0.5% to $4,265.22 an ounce by 0330 GMT, following a 4.4% rise in the previous session. Meanwhile, December U.S. gold futures climbed 0.5% to $4,324.60 after a 4% jump on Wednesday. The broader rally was supported by falling Treasury yields and a softer dollar across markets for precious metals.
Thursday’s gains kept gold above its 50-day moving average around $4,160, a level it had struggled to sustain during recent declines. Prices rebounded to levels last seen on June 18, surpassing Monday’s close by over 5%. Although the rally did not reach the all-time highs in May when spot prices exceeded $4,500, it did recover much of the losses experienced in June and July.
U.S. Treasury yields declined as gold prices gained traction. The benchmark 10-year yield hovered near 4.61%, down from approximately 4.74% at the end of July, while the two-year yield was near 4.18% on Wednesday. Since gold does not pay interest, lower bond yields narrow the income gap between bullion and government debt. Additionally, the dollar weakened against several major currencies, making gold more affordable for buyers using other currencies.
Bond market movements support gold rally
Economic data released recently added context to the market’s upward move. In July, private employers added 44,000 jobs, following a revised increase of 95,000 in June, marking the smallest monthly gain in six months. The Federal Reserve maintained its benchmark interest rate between 3.5% and 3.75% on July 29. Meanwhile, the government’s comprehensive employment report is due on Friday, covering hiring across public and private sectors.
Before Wednesday’s surge, gold prices were under steady 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 daily performance for the metal in about six months. Thursday’s gains pushed bullion close to the upper range of recent trading levels. Both spot and futures prices remained significantly above their early-week levels, with trading activity focused on yields and currency movements.
Central banks continue to be key gold buyers
Official and institutional demand continues to influence the gold market. The World Gold Council reported second-quarter demand of 1,269 metric tons, including over-the-counter activity, matching the same period last year. First-half demand grew by 2% to 2,522 tons. Central banks from Poland, Uzbekistan, China, and Kazakhstan were among the largest buyers during this period. Rising prices also increased the total value of gold demand for the first six months of the year.
Other precious metals experienced varied moves Thursday. Silver dipped 0.1% to $62.02 an ounce, while platinum gained 1.2% to $1,755.18. Palladium increased 0.8%, reaching $1,374.33, marking its third consecutive rise. Gold remained the highlight of the session, maintaining proximity to a seven-week high as Treasury yields declined and the dollar weakened, extending its recent rebound above key trading levels.