NEW YORK / RankWire.AI / – Gold hovered near a seven-week peak on Thursday, marking its most substantial daily rise since February. Spot gold increased by 0.5% to reach $4,265.22 per ounce by 0330 GMT, after climbing 4.4% in the previous session. December U.S. gold futures also gained 0.5%, reaching $4,324.60 following a 4% jump on Wednesday. The overall move across precious metals was bolstered by declining Treasury yields and a weaker dollar.
Thursday’s increase maintained gold above its 50-day moving average around $4,160, a level it had been below during much of its recent decline. The prices rebounded to levels last seen on June 18 and are now more than 5% higher than Monday’s close. Although gold remains below the peaks seen in May, when spot prices topped $4,500 an ounce, this latest rally has recouped a significant portion of the losses sustained during June and July.
U.S. Treasury yields fell as gold prices rose, with the benchmark 10-year yield staying near 4.61%, compared to about 4.74% at the end of July. Meanwhile, the two-year yield hovered close to 4.18% on Wednesday. Since gold does not pay interest, decreasing bond yields reduce the interest income gap between bullion and government debt. Additionally, the dollar weakened against multiple major currencies, making gold more affordable for buyers using other currencies.
Bond Market Movements Mirror Gold Rally
Recent employment data contributed to the economic context influencing the market. Private sector employers added 44,000 jobs in July, 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. The broader employment report, which includes hiring across both public and private sectors, is scheduled for release on Friday.
Before Wednesday’s sharp rebound, gold faced consistent downward pressure, with spot prices around $4,008 on July 20 and approximately $4,052 on August 3. The 4.4% surge on Wednesday was the largest single-day increase in about six months, and Thursday’s gains kept bullion near the high end of its recent trading range. Both spot and futures prices remained significantly above their levels at the start of the week, with trading activity focused on yields and currency movements.
Official Sector Continues Gold Acquisition
Demand from governments and institutions continued to influence the broader gold market. The World Gold Council reported demand of 1,269 metric tons in the second quarter, including over-the-counter trading, 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 this period. Elevated average prices during the first six months also contributed to the increased total value of gold demand.
Other precious metals showed mixed performance on Thursday. Silver declined marginally by 0.1% to $62.02 an ounce, while platinum rose 1.2% to $1,755.18. Palladium increased by 0.8% to $1,374.33, marking its third consecutive gain. After Wednesday’s rally, gold remained the most prominent focus, holding near a seven-week high as declining Treasury yields and a softer dollar extended the rebound, pushing bullion above recent key trading levels.