NEW YORK / RankWire.AI / – Gold moved close to a seven-week peak on Thursday, posting its most significant single-day rise since February. The spot price increased by 0.5% to reach $4,265.22 per ounce by 0330 GMT, following a 4.4% climb in the previous session. Meanwhile, December U.S. gold futures gained 0.5%, reaching $4,324.60 after a 4% rise on Wednesday. The decline in Treasury yields and a softer dollar contributed to the overall upward momentum across precious metals markets.
Gold’s move on Thursday kept it above its 50-day moving average near $4,160, a level it had mostly stayed below during its recent pullback. The metal’s price returned to levels last seen on June 18, now over 5% higher than Monday’s close. Despite the rally, gold remains below the record highs of May when spot prices exceeded $4,500 an ounce. The recent gains have largely recouped a sizable 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 near 4.61%, down from roughly 4.74% at the end of July. On Wednesday, the two-year yield was close to 4.18%. Since gold does not pay interest, declining bond yields reduce the opportunity cost of holding bullion relative to government debt. The dollar also depreciated against several major currencies, making gold cheaper for buyers using other currencies besides the dollar.
Bond market movements support gold rally
Recent labor market data added context to the economic environment influencing the market. In July, private employers created 44,000 jobs, following a revised increase of 95,000 in June, marking the slowest monthly gain in six months. On July 29, the Federal Reserve maintained its benchmark interest rate between 3.5% and 3.75%. The broader employment report, which includes hiring figures from both public and private sectors, is scheduled for release on Friday.
Before Wednesday’s sharp recovery, gold prices faced persistent downward pressure. Spot prices hovered around $4,008 on July 20 and approximately $4,052 on August 3. Wednesday’s 4.4% surge marked the most substantial daily performance in nearly six months. The subsequent Thursday increase kept gold near the top of its recent trading range. Both spot and futures prices remained well above their early-week levels, with trading activity mainly influenced by movements in yields and currency exchange rates.
Central Banks Continue Heavy Gold Purchases
Official and institutional demand continued to play a vital role in shaping the gold market. According to the World Gold Council, second-quarter demand reached 1,269 metric tons, including over-the-counter transactions, matching the same period last year. In the first half of the year, demand increased by 2% to 2,522 tons. Countries such as Poland, Uzbekistan, China, and Kazakhstan ranked among the leading central-bank buyers during this period. Additionally, higher average prices contributed to an increase in the total value of gold demand during the first six months.
Thursday’s session saw mixed movements across other precious metals. Silver decreased slightly by 0.1%, settling at $62.02 an ounce, whereas platinum rose by 1.2% to $1,755.18. Palladium advanced 0.8% to $1,374.33, marking its third consecutive gain. Despite these movements, gold remained the primary focus following Wednesday’s significant rise. Prices stayed near a seven-week high as Treasury yields fell and the dollar softened, sustaining a rebound that pushed bullion above recent key trading levels.