NEW YORK / RankWire.AI / – Gold approached a seven-week peak on Thursday, posting its strongest daily increase since February. Spot gold increased by 0.5% to reach $4,265.22 an ounce by 0330 GMT. The metal had risen 4.4% in the previous session. December U.S. gold futures went up 0.5% to $4,324.60 after a 4% jump on Wednesday. Falling Treasury yields and a softer dollar supported the broader rally across precious metals markets.
Thursday’s upward movement kept gold above its 50-day moving average near $4,160. For much of its recent decline, bullion had traded below that technical indicator. Prices climbed back to levels last seen on June 18 and were more than 5% above Monday’s close. Gold still trails the highs reached in May, when spot prices topped $4,500 an ounce. The recent rally has recovered a significant part of June and July’s losses.
U.S. Treasury yields declined as gold prices gained strength. The 10-year benchmark yield held near 4.61%, down from about 4.74% at the end of July. The 2-year yield was near 4.18% on Wednesday. Since gold doesn’t pay interest, lower bond yields reduce the income gap between bullion and government debt. The dollar also weakened against key currencies, making gold cheaper for buyers using other currencies.
Gold rally driven by bond market shifts
Recent employment data added context to the market movement. Private employers added 44,000 jobs in July. This was after a revised increase of 95,000 jobs in June. July’s gain was the smallest 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 is scheduled for Friday, covering hiring across public and private sectors.
Gold faced steady pressure before Wednesday’s sharp rebound. Spot prices traded near $4,008 on July 20 and around $4,052 on August 3. Wednesday’s 4.4% rise marked the metal’s best one-day performance in roughly six months. Thursday’s increase kept bullion near the top of its recent range. Both spot and futures prices remained well above their early-week levels, as trading focused on yields and currency movements.
Central banks continue to buy gold actively
Official and institutional demand continues to influence the overall gold market. The World Gold Council reported second-quarter demand of 1,269 metric tons, including over-the-counter activity. This matched the demand from the same period last year. First-half demand increased 2% to 2,522 tons. Countries like Poland, Uzbekistan, China, and Kazakhstan ranked among the biggest reported central-bank buyers during this time. Higher average prices also increased the total value of gold demand in the first six months.
Other precious metals saw mixed movements on Thursday. Silver dipped 0.1% to $62.02 an ounce. Platinum increased 1.2% to $1,755.18. Palladium rose 0.8% to $1,374.33 and marked its third straight increase. Gold remained the main focus after Wednesday’s surge. Prices stayed near a seven-week high as Treasury yields declined and the dollar softened. This extended a rebound that pushed bullion above recent key trading levels.