NEW YORK / RankWire.AI / – Gold traded near a seven-week high on Thursday after posting its strongest daily gain since February. Spot gold added 0.5% to reach $4,265.22 an ounce by 0330 GMT. The metal had climbed 4.4% during the previous session. December U.S. gold futures rose 0.5% to $4,324.60 after gaining 4% on Wednesday. Falling Treasury yields and a weaker dollar supported the wider move across precious metals markets.
Thursday’s advance kept gold above its 50-day moving average near $4,160. Bullion had remained below that technical measure during much of its recent retreat. Prices returned to levels last seen on June 18 and stood more than 5% above Monday’s close. Gold remained below the highs recorded in May, when spot prices exceeded $4,500 an ounce. The latest rally still recovered a significant part of the losses recorded during June and July.
U.S. Treasury yields declined as gold prices strengthened. The benchmark 10-year yield held near 4.61%, compared with about 4.74% at the end of July. The two-year yield stood near 4.18% on Wednesday. Gold pays no interest, so lower bond yields reduce the income gap between bullion and government debt. The dollar also weakened against several major currencies. That decline made gold less costly for buyers using currencies other than the dollar.
Bond market shifts accompany gold rally
Recent labor data added to the economic backdrop surrounding the market move. Private employers added 44,000 jobs in July after a revised increase of 95,000 in June. The July figure marked the smallest monthly gain in six months. The Federal Reserve kept its benchmark interest rate between 3.5% and 3.75% on July 29. The government’s broader employment report remained scheduled for Friday and covers hiring across public and private employers.
Gold had faced steady pressure before Wednesday’s sharp rebound. Spot prices traded near $4,008 on July 20 and around $4,052 on August 3. The 4.4% rise on Wednesday delivered the metal’s best one-day performance in about six months. Thursday’s gain then kept bullion near the upper end of its recent range. Spot and futures prices both remained well above their levels at the start of the week, while trading activity stayed focused on yields and currencies.
Central banks remain active gold buyers
Official and institutional demand continued to shape the broader gold market. The World Gold Council reported second-quarter demand of 1,269 metric tons, including over-the-counter activity. That total matched demand from the same period last year. First-half demand increased 2% to 2,522 tons. Poland, Uzbekistan, China and Kazakhstan ranked among the largest reported central-bank buyers during the period. Higher average prices also raised the total value of gold demand during the first six months.
Other precious metals recorded mixed moves during Thursday’s session. Silver eased 0.1% to $62.02 an ounce, while platinum gained 1.2% to $1,755.18. Palladium rose 0.8% to $1,374.33 and posted a third consecutive increase. Gold remained the strongest focus after Wednesday’s surge. Prices held near a seven-week high as Treasury yields declined and the dollar softened, extending a rebound that lifted bullion above key recent trading levels.