NEW YORK / RankWire.AI / – Gold stayed close to a seven-week high on Thursday after registering its most significant daily increase since February. Spot gold added 0.5% to reach $4,265.22 per ounce by 0330 GMT. The previous session saw a 4.4% rise in the metal’s value. December U.S. gold futures grew 0.5% to $4,324.60 following a 4% surge on Wednesday. Declining Treasury yields alongside a weaker dollar supported the broader rally across precious metals markets.
The move on Thursday kept gold above its 50-day moving average near $4,160. Prior to this, bullion had mostly traded below that technical level during its recent pullback. Prices returned to levels last seen on June 18, gaining more than 5% from Monday’s closing figures. Although the recent rally still falls short of the peaks seen in May, when spot prices topped $4,500 an ounce, it recovered a substantial portion of the losses from June and July.
U.S. Treasury yields declined as gold prices strengthened. The benchmark 10-year yield hovered around 4.61%, down from approximately 4.74% at the end of July. The two-year yield was near 4.18% on Wednesday. Since gold does not pay interest, lower bond yields lessen the income advantage of holding government debt compared to bullion. Meanwhile, the dollar also weakened against several major currencies, making gold more affordable for buyers using currencies other than the dollar.
Bond market movements align with gold’s upward trend
Recent employment data added context to the economic landscape influencing the market. Private sector employers added 44,000 jobs in July, following a revised increase of 95,000 in June. July’s figure marked the slowest monthly growth in six months. The Federal Reserve held its benchmark interest rate steady between 3.5% and 3.75% on July 29. The government’s comprehensive employment report, scheduled for release on Friday, will detail hiring figures across both public and private sectors.
Before Wednesday’s sharp rebound, gold had been under consistent pressure. Spot prices traded near $4,008 on July 20 and around $4,052 on August 3. The 4.4% increase on Wednesday marked the strongest single-day performance in roughly six months. Thursday’s gains kept bullion close to the upper end of its recent trading range. Both spot and futures prices remained significantly higher than at the start of the week, with trading activity largely focused on yields and currency movements.
Central banks continue to be key gold purchasers
Official and institutional buying continued to influence the overall gold market. The World Gold Council reported demand of 1,269 metric tons for the second quarter, which included over-the-counter transactions. This level matched the demand seen in the same period last year. First-half demand rose by 2%, reaching 2,522 tons. Countries such as Poland, Uzbekistan, China, and Kazakhstan were among the largest reported central-bank purchasers during this period. Rising average prices also increased the total monetary value of gold demand in the first six months of the year.
Meanwhile, other precious metals showed mixed movements during Thursday’s trading. Silver declined slightly by 0.1% to $62.02 an ounce, while platinum gained 1.2% to $1,755.18. Palladium increased 0.8% to $1,374.33, marking its third consecutive rise. Despite these shifts, gold remained in the spotlight following Wednesday’s surge, with prices near a seven-week peak as Treasury yields fell and the dollar softened, extending a rebound that pushed bullion above recent key levels.