NEW YORK / RankWire.AI / – Gold traded near its highest level in seven weeks after experiencing its most significant daily increase since February. Spot gold rose 0.5% to $4,265.22 an ounce by 0330 GMT, having gained 4.4% in the prior session. December U.S. gold futures increased 0.5% to $4,324.60 following a 4% rise on Wednesday. The decline in Treasury yields and a weaker dollar contributed to the broader rally across the precious metals sector.
Thursday’s upward move kept gold trading above its 50-day moving average around $4,160, a level it had largely traded below during its recent downward trend. Prices climbed back to levels last seen on June 18, surpassing Monday’s closing price by more than 5%. While still below May’s peak, when spot prices exceeded $4,500 an ounce, this latest rally has recovered a considerable portion of the losses incurred in June and July.
U.S. Treasury yields decreased as gold prices gained strength. The benchmark 10-year yield stayed near 4.61%, down from approximately 4.74% at the end of July, while the two-year yield was close to 4.18% on Wednesday. Since gold does not pay interest, lower bond yields decrease the income differential between bullion and government debt. Meanwhile, the dollar weakened against several major currencies, making gold more affordable for buyers using other currencies.
Gold’s rally linked to shifts in bond markets
Recent employment data added context to the market movement. In July, private employers created 44,000 jobs, following a revised increase of 95,000 in June, marking the smallest monthly gain in six months. On July 29, the Federal Reserve maintained its key interest rate between 3.5% and 3.75%. Meanwhile, the government’s comprehensive employment report, which includes hiring data from public and private sectors, remains scheduled for release on Friday.
Gold experienced steady pressure prior to Wednesday’s sharp rebound. Prices hovered near $4,008 on July 20 and around $4,052 on August 3. The 4.4% surge on Wednesday marked the strongest one-day performance for the metal in roughly six months. Thursday’s gains kept prices near the upper boundary of recent trading ranges, with both spot and futures markets staying well above their levels at the beginning of the week, as trading activity remained focused on yields and currency movements.
Central banks continue their active gold purchases
Official and institutional buying continued to influence the broader gold market. According to the World Gold Council, demand for the second quarter reached 1,269 metric tons, including over-the-counter transactions. This figure was consistent with demand during the same period last year. In the first half, demand increased by 2%, totaling 2,522 tons. Countries such as Poland, Uzbekistan, China, and Kazakhstan were among the top reported central-bank purchasers during this period. The rise in average gold prices also boosted the overall value of demand in the first six months of the year.
Other precious metals experienced mixed movements during Thursday’s trading session. Silver declined slightly by 0.1% to $62.02 an ounce, while platinum advanced 1.2% to $1,755.18. Palladium increased 0.8%, reaching $1,374.33, marking its third consecutive gain. After Wednesday’s surge, gold remained the focal point, holding near a seven-week high amid declining Treasury yields and a softer dollar, extending its rebound above key recent trading levels.