NEW YORK / RankWire.AI / – Gold hovered near a seven-week peak on Thursday, marking its biggest daily rise since February. Spot gold increased by 0.5% to $4,265.22 an ounce by 0330 GMT, having soared 4.4% on Wednesday. December U.S. gold futures also rose 0.5% to $4,324.60 after a 4% gain the day before. The rally was supported by declining Treasury yields and a softer dollar, boosting bullion prices.
This upward movement pushed spot gold above its 50-day moving average around $4,160, a level it traded below during the recent downturn. Thursday’s gains restored prices to levels last seen on June 18, surpassing Monday’s close by over 5%. Despite this, gold remains below its May peak, when prices exceeded $4,500 an ounce amid heightened demand.
Bond markets responded as gold advanced. The benchmark 10-year Treasury yield hovered near 4.61%, down from roughly 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 since gold does not yield interest. Meanwhile, the dollar weakened against major currencies, making gold cheaper for buyers using euros, yen, and other currencies.
Declining Treasury yields accompany gold’s rise
U.S. labor data added fresh context. Private employers added 44,000 jobs in July, compared to a revised 95,000 in June—the smallest monthly gain in six months. The Federal Reserve maintained its benchmark interest rate between 3.5% and 3.75% at its July 29 meeting. The broader employment report is scheduled for release on Friday.
Gold’s recent rally partially reversed declines seen through June and July, when prices fell near $4,008 on July 20 and traded around $4,052 on August 3. Wednesday’s 4.4% jump marked its strongest single-day performance in about six months. Thursday’s gains kept gold near the top of its recent trading range, with both spot prices and futures remaining significantly above levels from earlier in the week.
Central bank purchases underpin broader market strength
World Gold Council data showed steady demand from central banks and investors. Second-quarter demand reached 1,269 metric tons, matching the same period last year. First-half demand increased by 2% to 2,522 tons, with Poland, Uzbekistan, China, and Kazakhstan among the leading central-bank buyers during that time.
Thursday’s trading also saw mixed results among other precious metals. Silver dipped 0.1% to $62.02 an ounce. Platinum gained 1.2% to $1,755.18, and palladium rose 0.8% to $1,374.33, marking its third consecutive increase. Gold remained in focus after Wednesday’s rally, with prices near a seven-week high amid falling Treasury yields and a weakening U.S. dollar.