NEW YORK / RankWire.AI / – Gold continued its upward trend on Tuesday, marking a third straight session of gains following last week’s significant rebound. Spot gold increased by 1% to $4,432.74 an ounce by 0217 GMT, reaching its highest level since June 5. Meanwhile, U.S. gold futures rose 1.7% to $4,492.60. This latest rally pushed bullion beyond the seven-week peak established last week and strengthened its recovery from early August declines.
The upward movement came after weaker U.S. employment figures were released on Friday, showing nonfarm payrolls falling by 23,000 jobs in July. The unemployment rate edged down to 4.1% from 4.2% in June. Average hourly earnings increased by two cents to $37.62 during the month. The Bureau of Labor Statistics reported that payroll employment had grown at an average of 34,000 jobs per month over the previous year. Gold surged by 2.4% on Friday following this report.
Expectations surrounding interest rates continue to influence gold trading since the metal itself does not pay interest. The Federal Reserve maintained its benchmark federal funds rate at 3.5% to 3.75% during its July meeting. The decision was carried by a 9-3 vote, with three policymakers supporting a quarter-point hike. The Federal Reserve also indicated that economic activity continued to expand at a solid rate, even as inflation remained above its 2% target.
Focus Shifts to US Inflation Data
On Wednesday, the key economic indicator to watch will be the July Consumer Price Index. Consumer prices declined 0.4% in June compared to the previous month but were 3.5% higher than the same period last year. Over the 12 months, energy prices increased by 15.7%, while food prices rose by 3%. These July figures will serve as the latest official measure of consumer inflation, with bullion trading at its highest point in more than two months.
The Producer Price Index for July is scheduled for release on Thursday, following June’s final-demand producer prices which fell 0.3%. The week started with strong momentum for gold after Friday’s 2.4% rise. On Monday, spot gold added another 0.8% to reach $4,376.56 an ounce. Prices had dipped earlier in the session after hitting a seven-week high but recovered before the close. Tuesday’s gains pushed the price above $4,400, extending the three-day rally.
Precious Metals Also Post Gains
Tuesday’s trading saw silver, platinum, and palladium all advance. Spot silver rose 0.9% to $66.30 an ounce, platinum increased 0.7% to $1,765.26, and palladium climbed 0.8% to $1,394.00. These broader gains occurred amid a week filled with U.S. inflation updates and ongoing focus on monetary policy. Gold remained the spotlight, reaching its highest point since early June and building on its recovery that began after Friday’s employment report.
The upward move on Tuesday marked a reversal from gold’s brief retreat at the start of Monday’s trading session. The precious metal had declined from its seven-week peak before turning around and ending the day higher. This latest rally pushed spot gold above $4,400, its strongest level in over two months. Despite these gains, prices are still below the record above $5,500 an ounce set in January 2026. The market now awaits two U.S. inflation reports this week, starting with consumer prices on Wednesday.