NEW YORK / RankWire.AI / – Gold stayed close to a seven-week high on Thursday following its biggest daily jump since February. Spot gold increased by 0.5% to $4,265.22 an ounce by 0330 GMT. The metal had surged 4.4% during Wednesday’s session. December U.S. gold futures rose 0.5% to $4,324.60 after climbing 4% the previous day. The rise was driven by declining Treasury yields and a softer dollar, which supported bullion prices.
The rally pushed spot gold above its 50-day moving average near $4,160. For much of the recent decline, prices had traded below that level. Thursday’s gain brought gold back to prices last seen on June 18. The metal now stood over 5% higher than Monday’s closing level. However, it still remained below its May peak, when spot prices exceeded $4,500 an ounce amid stronger demand.
Bond markets also responded as gold moved upward. The benchmark 10-year Treasury yield traded around 4.61%, down from about 4.74% at the end of July. The two-year yield was near 4.18% on Wednesday. Falling yields reduce the appeal of government bonds because they do not pay interest, unlike gold. Meanwhile, the dollar weakened against major currencies, making bullion cheaper for buyers using euros, yen, and others.
Gold advances as Treasury yields decline
U.S. labor data added new details. Private employers added 44,000 jobs in July. This was a slowdown from the revised 95,000 increase in June. July’s gain was the smallest in six months. The Federal Reserve kept its benchmark rate between 3.5% and 3.75% at its July 29 meeting. The government’s broader employment report is due for release on Friday.
Gold’s recent upward move offset part of a decline that stretched through June and July. Spot prices dipped near $4,008 on July 20. They traded around $4,052 on August 3. Wednesday’s 4.4% jump marked the strongest single-day gain in about six months. Thursday’s rise kept gold near the high end of its recent range. Both spot prices and futures stayed well above their levels from the start of the week.
Central-bank buying supports overall market strength
Demand figures continued to show steady buying by central banks and investors. The World Gold Council reported second-quarter demand of 1,269 metric tons, including over-the-counter activity. This level matched demand from the same quarter last year. First-half demand increased by 2%, reaching 2,522 tons. Poland, Uzbekistan, China, and Kazakhstan were among the largest central-bank buyers in the six months.
Other precious metals showed mixed results on Thursday. Silver dipped 0.1% to $62.02 an ounce. Platinum rose 1.2% to $1,755.18. Palladium gained 0.8%, reaching $1,374.33. This marked palladium’s third straight increase. Gold remained the main focus after Wednesday’s surge. Prices stayed near a seven-week high as Treasury yields declined and the U.S. dollar weakened.