NEW YORK / RankWire.AI / – Gold stayed close to a seven-week high on Thursday after its largest daily advance since February. Spot gold gained 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% a day earlier. Lower Treasury yields and a weaker dollar accompanied the sharp rise in bullion prices.
The rally lifted spot gold above its 50-day moving average near $4,160. Prices had traded below that level during much of the recent decline. Thursday’s advance brought bullion back to levels last recorded on June 18. Gold stood more than 5% above Monday’s closing price. The metal still remained below its May peak, when spot prices moved above $4,500 an ounce during a period of stronger demand.
Bond markets also shifted as gold moved higher. The benchmark 10-year Treasury yield traded near 4.61%, down from about 4.74% at July’s end. The two-year yield stood near 4.18% on Wednesday. Lower yields reduce the income advantage of government debt because gold does not pay interest. The dollar also weakened against major currencies, making bullion less expensive for buyers using euros, yen and other currencies.
Treasury yields fall as gold advances
U.S. labor figures added fresh data to the market picture. Private employers created 44,000 jobs in July, compared with a revised 95,000 increase in June. The July total marked the smallest monthly gain in six months. The Federal Reserve kept its benchmark interest rate between 3.5% and 3.75% at its July 29 meeting. The government’s wider employment report remained scheduled for release on Friday.
Gold’s latest move reversed part of a decline that lasted through June and July. Spot prices fell near $4,008 on July 20 and traded around $4,052 on August 3. Wednesday’s 4.4% jump delivered the strongest one-day performance in about six months. Thursday’s increase then kept gold near the top of its recent trading range. Both spot prices and futures remained well above their levels at the start of the week.
Central-bank demand supports the wider market
Broader demand figures continued to show steady buying from central banks and investors. The World Gold Council reported second-quarter demand of 1,269 metric tons, including over-the-counter activity. That total matched the level recorded during the same quarter last year. Demand for the first half increased 2% to 2,522 tons. Poland, Uzbekistan, China and Kazakhstan ranked among the largest reported central-bank buyers during the six-month period.
Other precious metals produced mixed results during Thursday’s trading. Silver declined 0.1% to $62.02 an ounce. Platinum advanced 1.2% to $1,755.18, while palladium gained 0.8% to $1,374.33. Palladium’s move marked its third consecutive increase. Gold remained the main focus after Wednesday’s surge, with prices holding near a seven-week high as Treasury yields fell and the U.S. dollar weakened.