NEW YORK / RankWire.AI / – Gold approached a seven-week peak on Thursday, posting its most substantial daily gain since February. The spot price increased by 0.5% to reach $4,265.22 per ounce by 0330 GMT. This followed a 4.4% rise during the previous trading session. December U.S. gold futures climbed 0.5% to $4,324.60 after gaining 4% on Wednesday. The downward trend in Treasury yields and a softer dollar supported broader gains across the precious metals markets.
The rally on Thursday pushed gold above its 50-day moving average, which sits near $4,160. For much of its recent decline, bullion had traded below this technical threshold. Prices returned to levels last seen on June 18 and are now more than 5% higher than Monday’s close. Although it has recovered some ground, gold still remains below its May highs, when spot prices surpassed $4,500 an ounce. The recent upward movement has regained a significant portion of the losses recorded during June and July.
U.S. Treasury yields declined as gold prices strengthened. The benchmark 10-year yield hovered near 4.61%, compared to approximately 4.74% at the end of July. The two-year yield was close to 4.18% on Wednesday. Since gold does not pay interest, falling bond yields diminish the income advantage of holding government debt versus bullion. Meanwhile, the dollar also weakened against several major currencies, making gold less expensive for buyers using foreign currencies.
Gold Rally Coincides with Shifts in Bond Markets
Recent employment figures added context to the market movement. Private sector employers added 44,000 jobs in July, following a revised increase of 95,000 in June. The July number marked the smallest monthly gain in six months. The Federal Reserve kept its benchmark interest rate between 3.5% and 3.75% on July 29. The broader employment report from the government remains scheduled for Friday and covers hiring across both public and private sectors.
Before Wednesday’s sharp rebound, gold faced consistent downward pressure. Spot prices traded near $4,008 on July 20 and hovered around $4,052 on August 3. The 4.4% surge on Wednesday marked the best one-day performance in about six months. Thursday’s gains kept the metal near the top of its recent trading range. Both spot and futures prices stayed well above their levels from earlier in the week, with trading activity mainly influenced by yields and currency movements.
Central Banks Continue to Purchase Gold Actively
Official and institutional demand continued to influence the overall gold market. The World Gold Council reported second-quarter demand of 1,269 metric tons, including over-the-counter transactions. This figure was identical to demand during the same period last year. First-half demand increased by 2%, reaching 2,522 tons. Countries such as Poland, Uzbekistan, China, and Kazakhstan were among the largest reported buyers of central bank gold during this period. Rising average prices also boosted the total value of gold demand in the first six months.
Other precious metals experienced mixed movements during Thursday’s trading. Silver declined slightly by 0.1% to $62.02 an ounce. In contrast, platinum rose by 1.2% to $1,755.18. Palladium increased by 0.8% to $1,374.33, marking its third consecutive daily rise. Gold remained the main focus after Wednesday’s rally, maintaining near a seven-week high as Treasury yields fell and the dollar weakened. This extension of the rebound helped lift bullion above key recent trading levels.