NEW YORK / RankWire.AI / – Gold hovered near a seven-week peak on Thursday after experiencing its biggest daily increase since February. Spot gold edged up 0.5% to $4,265.22 an ounce by 0330 GMT, following a 4.4% jump during Wednesday’s session. Additionally, December U.S. gold futures increased 0.5% to $4,324.60 after a 4% rise the previous day. The notable rise coincided with declining Treasury yields and a softer dollar, boosting bullion prices.
The upward movement pushed spot gold above its 50-day moving average close to $4,160. For much of the recent downturn, prices had traded below this level. Thursday’s rally restored bullion to levels last seen on June 18, with prices over 5% higher than Monday’s closing. Despite this recovery, gold remains below its peak in May, when spot prices surpassed $4,500 an ounce amid heightened demand.
As gold advanced, bond markets also experienced shifts. The benchmark 10-year Treasury yield traded near 4.61%, down from approximately 4.74% at the end of July. The two-year yield was around 4.18% on Wednesday. Falling yields diminish the income advantage of government bonds, given that gold does not pay interest. Meanwhile, the dollar weakened against major currencies, making bullion more affordable for buyers using euros, yen, and other currencies.
Gold gains coincide with decline in Treasury yields
U.S. labor data provided additional context. In July, private employers added 44,000 jobs, compared to a revised 95,000 increase in June. This marked the smallest monthly gain in half a year. The Federal Reserve kept its benchmark interest rate between 3.5% and 3.75% at its July 29 meeting, with the broader employment report scheduled for release on Friday.
Gold’s recent upward movement partially reversed declines seen through June and July. On July 20, spot prices dipped near $4,008 and hovered around $4,052 on August 3. The 4.4% jump on Wednesday marked the strongest daily gain in about six months. Thursday’s rally sustained gold near its recent trading range’s high, with both spot prices and futures remaining well above their levels at the week’s start.
Central-bank activity continues to bolster the broader market
World Gold Council figures indicated consistent purchasing from central banks and investors. The organization reported second-quarter demand reaching 1,269 metric tons, including over-the-counter trading, matching the same quarter last year. First-half demand increased by 2%, totaling 2,522 tons. Poland, Uzbekistan, China, and Kazakhstan ranked among the most active central-bank purchasers during this period.
Thursday’s trading also saw mixed movements in other precious metals. Silver declined marginally by 0.1% to $62.02 an ounce, while platinum rose 1.2% to $1,755.18. Palladium gained 0.8% to $1,374.33, marking its third consecutive increase. Gold remained the primary focus after Wednesday’s rally, with prices staying near a seven-week high amid falling Treasury yields and a weakened U.S. dollar.
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