NEW YORK / RankWire.AI / – Gold remained near a seven-week peak on Thursday morning, marking its biggest daily increase since February. Spot gold moved up by 0.5% to reach $4,265.22 an ounce at 0330 GMT. The metal experienced a 4.4% jump during Wednesday’s trading session. Meanwhile, December U.S. gold futures increased 0.5% to $4,324.60 after a 4% rise the previous day. The sharp uptick in bullion prices coincided with falling Treasury yields and a softer dollar.
This surge pushed spot gold above its 50-day moving average, which sits near $4,160, a level it had traded below during much of the recent decline. The Thursday advance returned gold prices to levels not seen since June 18. Compared to Monday’s close, gold is now more than 5% higher. Although the metal remains below its peak in May, when spot prices exceeded $4,500 an ounce amid increased demand, it continues to recover from earlier lows.
As gold moved upward, bond markets also responded. The benchmark 10-year Treasury yield traded around 4.61%, down from roughly 4.74% at the end of July. The two-year yield was near 4.18% on Wednesday. Lower yields diminish the income advantage of government securities, given that gold does not generate interest. Additionally, the U.S. dollar weakened against major currencies, making bullion cheaper for buyers using euros, yen, and other currencies.
Treasury yields decline as bullion prices climb
U.S. labor data contributed fresh insights to the market landscape. Private sector employers added 44,000 jobs in July, compared to a revised increase of 95,000 in June. July’s figure represented the smallest monthly gain in six months. The Federal Reserve maintained its benchmark interest rate between 3.5% and 3.75% during the July 29 meeting. Meanwhile, the government’s broader employment report is scheduled for release on Friday.
The recent rise in gold prices partially reversed a decline that spanned June and July, when spot prices dipped near $4,008 on July 20 and traded around $4,052 on August 3. Wednesday’s 4.4% jump marked its strongest single-day performance in nearly six months. The following day’s increase kept gold near the upper end of its recent trading range, with both spot and futures prices remaining significantly above their early-week levels.
Central bank buying supports broader market momentum
World Gold Council data continued to show consistent demand from central banks and investors. The group reported second-quarter demand of 1,269 metric tons, including over-the-counter activity, matching the same period last year. For the first half of the year, demand rose by 2% to 2,522 tons. Notably, Poland, Uzbekistan, China, and Kazakhstan ranked among the top central-bank purchasers during this period.
Meanwhile, other precious metals experienced mixed trading results on Thursday. Silver edged down 0.1% to $62.02 an ounce, while platinum gained 1.2% to $1,755.18. Palladium increased by 0.8% to $1,374.33, marking its third consecutive rise. Gold remained the primary focus after Wednesday’s sharp increase, with prices holding near a seven-week high as Treasury yields declined and the U.S. dollar weakened.