NEW YORK / RankWire.AI / – Gold continued its upward trend on Tuesday, marking a third straight session of gains after a significant rebound last week. The spot price increased by 1% to $4,432.74 per ounce by 0217 GMT, reaching its highest point since June 5. Meanwhile, U.S. gold futures rose by 1.7% to $4,492.60. This recent climb pushed gold past the seven-week high established last week and solidified its recovery from early August declines.
The rally was influenced by weaker U.S. employment data released on Friday, which showed nonfarm payrolls fell by 23,000 jobs in July. The unemployment rate dropped to 4.1% from 4.2% in June. Additionally, average hourly earnings increased by two cents to $37.62 for the month. According to the Bureau of Labor Statistics, payroll employment grew at an average rate of 34,000 jobs per month over the previous year. Gold surged 2.4% on Friday following this report.
Expectations around interest rates continue to influence gold trading because the precious metal 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 made by a 9-3 vote, with three policymakers supporting a quarter-point increase. The Federal Reserve also indicated that economic activity persists at a robust pace while inflation remains above its 2% target.
US Inflation Data Becomes the Next Market Focus
Wednesday brings the release of the Consumer Price Index for July, a key economic indicator. In June, consumer prices decreased by 0.4% from May but were still 3.5% higher than the previous year. Energy costs rose by 15.7% over the year, and food prices went up by 3%. The July figures will serve as the latest official measure of consumer inflation while bullion remains at its highest level in over two months.
The Producer Price Index for July will be released on Thursday, following a 0.3% decline in final-demand producer prices in June. Gold entered this week with strong momentum after Friday’s 2.4% rise. Spot gold increased by another 0.8% on Monday, reaching $4,376.56 per ounce. Prices had dipped earlier in the session after hitting a seven-week peak but recovered before the close. Tuesday’s gains pushed the price above $4,400, extending the three-day upward movement.
Broader Gains in Precious Metals
Tuesday’s trading saw silver, platinum, and palladium all post gains. Spot silver increased by 0.9% to $66.30 an ounce. Platinum gained 0.7% to $1,765.26, and palladium advanced by 0.8% to $1,394.00. The broader rise coincides with a busy week of U.S. inflation reports and ongoing focus on monetary policy. Gold continued to lead, reaching its highest price since early June and extending the recovery that began after Friday’s employment data.
The rise on Tuesday marked a reversal from gold’s brief retreat at the start of Monday’s trading session. After falling from its seven-week high, bullion reversed course and closed higher. This latest advance pushed spot gold to its strongest point in over two months. Although prices remain below the record above $5,500 an ounce set in January 2026, markets now anticipate two upcoming U.S. inflation releases this week, starting with consumer prices on Wednesday.