NEW YORK / RankWire.AI / – Gold approached a seven-week peak on Thursday morning, registering its most significant daily rise since February. The spot price gained 0.5% to reach $4,265.22 an ounce by 0330 GMT, following a 4.4% increase in the prior session. Meanwhile, December U.S. gold futures advanced by 0.5% to $4,324.60 after a 4% increase on Wednesday. The decline in Treasury yields and a softer dollar contributed to the broader rally across precious metals markets.
The rise on Thursday pushed gold above its 50-day moving average, which is near $4,160. Until now, the metal had mostly stayed below this technical indicator during its recent decline. Prices climbed back to levels last seen on June 18 and were more than 5% higher than Monday’s closing. Gold still remains below the peaks reached in May, when spot prices exceeded $4,500 per ounce. The recent rally has regained a significant portion of the losses experienced during June and July.
U.S. Treasury yields moved lower as gold prices gained strength. 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, declining bond yields lessen the interest rate gap between bullion and government debt. Additionally, the dollar weakened against several major currencies, making gold more affordable for buyers using non-dollar currencies.
Bond market movements reflect gold’s upward trend
Recent employment data have contributed to the economic context influencing this market movement. Private firms added 44,000 jobs in July, following a revised gain of 95,000 in June. This July figure was the smallest monthly increase in half a year. The Federal Reserve kept its benchmark interest rate between 3.5% and 3.75% on July 29. The broader employment report from the government is scheduled for release on Friday, covering hiring figures from both public and private sectors.
Before Wednesday’s notable rebound, gold faced persistent downward pressure. Spot prices traded near $4,008 on July 20 and around $4,052 on August 3. The 4.4% surge on Wednesday marked the best one-day performance in roughly six months. Thursday’s gains kept the bullion near the top 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.
Central banks continue to be active gold purchasers
Official and institutional demand continues to influence the broader gold market. The World Gold Council reported second-quarter demand of 1,269 metric tons, including over-the-counter transactions, matching the demand from the same period last year. In the first half of the year, demand increased by 2%, reaching 2,522 tons. Countries such as Poland, Uzbekistan, China, and Kazakhstan were among the largest reported central-bank buyers during this timeframe. Rising average prices also contributed to the increased total value of gold demand over the first six months.
Other precious metals experienced mixed movements during Thursday’s trading session. Silver declined slightly 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 session of gains. Gold remained the primary focus following Wednesday’s rally, with prices holding near a seven-week high as Treasury yields fell and the dollar weakened, extending the rebound that pushed bullion above recent key trading levels.