NEW YORK / RankWire.AI / – Gold hovered near a seven-week peak on Thursday after experiencing its biggest daily increase since February. Spot gold increased by 0.5% to reach $4,265.22 an ounce by 0330 GMT. During Wednesday’s session, the metal soared 4.4%. December U.S. gold futures also rose 0.5% to $4,324.60, after climbing 4% the previous day. The sharp rise in bullion prices was supported by lower Treasury yields and a weaker dollar.
This rally pushed spot gold above its 50-day moving average of around $4,160. For much of the recent decline, prices traded below that level. Thursday’s increase brought gold back to levels last seen on June 18. The metal’s price was more than 5% higher than Monday’s closing. Despite this, it remained below its peak in May, when spot prices exceeded $4,500 an ounce amid stronger demand.
Bond markets also responded as gold advanced. The benchmark 10-year Treasury yield traded near 4.61%, down from about 4.74% at the end of July. On Wednesday, the two-year yield was close to 4.18%. Lower yields diminish the income advantage of government bonds because gold does not pay interest. Additionally, the dollar weakened against major currencies, making bullion cheaper for buyers using euros, yen, and other currencies.
Gold Gains Drive Treasury Yields Lower
U.S. labor data provided fresh insights into the market. In July, private employers added 44,000 jobs, compared to a revised increase of 95,000 in June. This marked the smallest monthly gain in six months. The Federal Reserve kept its benchmark interest rate between 3.5% and 3.75% during its July 29 meeting. The government’s broader employment report is still set for release on Friday.
Gold’s recent upward movement partially reversed a decline that persisted through June and July. Spot prices dropped to nearly $4,008 on July 20, and hovered around $4,052 on August 3. Wednesday’s 4.4% jump was the strongest one-day performance in about six months. Thursday’s rise kept gold near the high end of its recent trading range. Both spot prices and futures stayed well above their levels at the beginning of the week.
Central Bank Buying Supports Broader Market Trends
Demand data from the World Gold Council continued to show consistent buying by central banks and investors. Second-quarter demand reached 1,269 metric tons, including over-the-counter transactions. This level matched the demand recorded during the same period last year. For the first half of the year, demand increased by 2% to 2,522 tons. Among the largest central-bank buyers during this period were Poland, Uzbekistan, China, and Kazakhstan.
Thursday’s trading saw mixed results for other precious metals. Silver declined slightly by 0.1% to $62.02 an ounce. Platinum rose by 1.2% to $1,755.18, while palladium gained 0.8% to $1,374.33. The latter marked its third straight day of gains. Gold remained the main focus following Wednesday’s surge, with prices staying near a seven-week high as Treasury yields declined and the U.S. dollar weakened.