NEW YORK / RankWire.AI / – Gold reached near a seven-week high on Thursday, propelled by its most significant daily increase since February. The spot price of gold rose 0.5% to $4,265.22 an ounce by 0330 GMT, after soaring 4.4% during Wednesday’s session. Additionally, December U.S. gold futures increased 0.5% to $4,324.60, following a 4% rise the previous day. This sharp climb was supported by declining Treasury yields and a weaker dollar, which together boosted bullion prices.
The upward movement pushed spot gold above its 50-day moving average near $4,160, a level it had traded below during much of its recent decline. Thursday’s gains pushed the metal back to prices last seen on June 18, with values more than 5% higher than Monday’s closing. Despite this rally, gold remains below its peak in May, when spot prices exceeded $4,500 an ounce amid heightened demand.
Corresponding shifts occurred in bond markets as gold advanced. The benchmark 10-year Treasury yield was around 4.61%, down from approximately 4.74% at the end of July. The two-year yield was near 4.18% on Wednesday. As lower yields diminish the income advantage of government bonds, gold’s appeal increases since it does not pay interest. Meanwhile, the U.S. dollar weakened against major currencies, making bullion more affordable for buyers using euros, yen, and other currencies.
Decline in Treasury yields accompanies gold’s climb
U.S. labor statistics provided fresh market context. Private sector employers added 44,000 jobs in July, a significant slowdown from the revised 95,000 increase in June. This was the smallest monthly gain in six months. The Federal Reserve kept its benchmark interest rate between 3.5% and 3.75% at its July 29 meeting, with the government’s broader employment report scheduled for release on Friday.
Gold’s recent upward move partially reversed declines seen through June and July, when spot prices dipped near $4,008 on July 20 and hovered around $4,052 on August 3. Wednesday’s 4.4% jump marked its strongest single-day gain in about six months, while Thursday’s rise helped maintain prices near the top of their recent trading range. Both spot and futures prices remain well above their levels at the week’s start.
Central bank buying continues to bolster overall market sentiment
World Gold Council data showed persistent demand from central banks and investors. The organization reported second-quarter demand of 1,269 metric tons, including over-the-counter transactions, matching the same period last year. Demand for the first half of the year rose 2% to 2,522 tons. Countries such as Poland, Uzbekistan, China, and Kazakhstan were among the top central-bank purchasers during this period.
Other precious metals had mixed results on Thursday. Silver declined slightly by 0.1% to $62.02 an ounce. Platinum increased 1.2% to $1,755.18, and palladium gained 0.8% to $1,374.33, marking its third consecutive rise. Gold continued to draw focus after Wednesday’s rally, with prices remaining near a seven-week high amid falling Treasury yields and a weakening U.S. dollar.