NEW YORK / RankWire.AI / – Gold maintained momentum near a seven-week peak on Thursday following its most significant single-day increase since February. Spot gold rose 0.5% to $4,265.22 per ounce by 0330 GMT, after soaring 4.4% on Wednesday. December U.S. gold futures also climbed 0.5% to $4,324.60 following a 4% rise the previous day. The sharp rally coincided with declining Treasury yields and a softer dollar, boosting bullion prices.
This upward move pushed spot gold above its 50-day moving average around $4,160, a level it had traded below during much of the recent downturn. Thursday’s gains brought prices back to levels last seen on June 18. Gold was more than 5% higher than Monday’s closing price. Nevertheless, it still remained beneath its May peak, when spot prices surpassed $4,500 an ounce amid heightened demand.
The bond markets responded as gold advanced. The key 10-year Treasury yield hovered near 4.61%, down from about 4.74% at the end of July. On Wednesday, the two-year yield was around 4.18%. Lower yields diminish the appeal of government bonds that pay interest, making gold more attractive. Meanwhile, the dollar weakened against major currencies, reducing the cost for buyers using euros, yen, and other currencies.
Treasury yields decline amid rising gold prices
U.S. labor data added new insights to the market outlook. Private sector employment increased by 44,000 jobs in July, compared with a revised gain of 95,000 in June. July’s figure was the smallest monthly rise 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 is still scheduled for release on Friday.
Gold’s recent upward correction reversed part of its decline that persisted through June and July. The price dipped near $4,008 on July 20 and traded around $4,052 on August 3. Wednesday’s 4.4% increase marked the strongest daily performance in approximately six months. Thursday’s gains helped keep gold close to its recent trading high, with both spot prices and futures well above their levels at the start of the week.
Central-bank buying supports broader market momentum
World Gold Council data showed steady demand from central banks and investors. In the second quarter, demand reached 1,269 metric tons, including over-the-counter activity, matching the level seen during the same period last year. For the first half of the year, overall demand increased by 2% to 2,522 tons. Countries such as Poland, Uzbekistan, China, and Kazakhstan were among the largest reported central-bank purchasers during this period.
Meanwhile, other precious metals showed mixed results on Thursday. Silver slipped 0.1% to $62.02 an ounce, while platinum climbed 1.2% to $1,755.18. Palladium also gained 0.8% to $1,374.33, marking its third straight increase. After Wednesday’s surge, gold remained in focus, holding near a seven-week high as Treasury yields declined and the U.S. dollar weakened.