NEW YORK / RankWire.AI / – Gold maintained close to a seven-week peak on Thursday, driven by its most substantial daily jump since February. Spot gold increased by 0.5% to $4,265.22 per ounce by 0330 GMT, after soaring 4.4% during Wednesday’s session. December U.S. gold futures also rose 0.5% to $4,324.60, following a 4% increase the previous day. The significant rally was supported by declining Treasury yields and a weakening dollar, which boosted bullion prices.
The upward momentum pushed spot gold above its 50-day moving average near $4,160, a level it had traded below during much of the recent downward trend. Thursday’s gains brought prices back to levels last seen on June 18, with gold more than 5% higher than its closing price on Monday. Despite this, it still remained below its peak in May when spot prices exceeded $4,500 an ounce amid heightened demand.
The bond markets responded to the rising gold prices, with the benchmark 10-year Treasury yield trading close to 4.61%, down from roughly 4.74% at the end of July. On Wednesday, the two-year yield was near 4.18%. As yields decrease, the relative income advantage of government bonds diminishes because gold does not generate interest. Meanwhile, the dollar weakened against major currencies, making bullion more affordable for buyers using euros, yen, and other currencies.
Gold gains coincide with falling Treasury yields
U.S. labor data added fresh insight into the market dynamics. In July, private employers created 44,000 jobs, compared to a revised increase of 95,000 in June. This marked the smallest monthly gain in six months. The Federal Reserve maintained its benchmark interest rate between 3.5% and 3.75% at its July 29 meeting. The broader employment report from the government remains scheduled for release on Friday.
The recent move in gold partially reversed the decline experienced during June and July. Prices fell to around $4,008 on July 20 and hovered near $4,052 on August 3. The 4.4% jump on Wednesday marked the strongest one-day performance in nearly six months. The following day’s rise kept gold close to the upper end of its recent trading range, with both spot prices and futures remaining well above their levels at the start of the week.
Central-bank buying supports broader market trends
Demand figures continued to show steady acquisitions from central banks and investors. According to the World Gold Council, second-quarter demand reached 1,269 metric tons, including over-the-counter activity, matching the level from the same period last year. For the first half of the year, demand increased by 2% to 2,522 tons. Major buyers during this period included Poland, Uzbekistan, China, and Kazakhstan.
On Thursday, other precious metals showed mixed performance. 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%, reaching $1,374.33, marking its third consecutive gain. Gold remains in focus, especially after Wednesday’s surge, with prices holding near a seven-week high amid falling Treasury yields and a weaker U.S. dollar.