NEW YORK / RankWire.AI / – Gold continued its upward trend on Tuesday, marking a third straight session of gains following a sharp rebound last week. Spot gold increased 1% to $4,432.74 an ounce by 0217 GMT, reaching its highest point since June 5. U.S. gold futures also rose by 1.7% to $4,492.60, pushing bullion past its seven-week peak from last week and bolstering 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. Meanwhile, the unemployment rate dropped from 4.2% to 4.1%. Average hourly earnings edged up by two cents to $37.62 during the month. According to the Bureau of Labor Statistics, payroll employment increased by an average of 34,000 jobs per month over the past year. Gold gained 2.4% on Friday following this report.
Expectations around interest rates continue to influence gold trading, as the metal does not pay interest. The Federal Reserve kept its benchmark federal funds rate steady at 3.5% to 3.75% during July’s meeting, with a 9-3 vote supporting the hold, although three policymakers favored a quarter-point hike. The Federal Reserve noted that economic activity persisted at a solid pace while inflation remained above its 2% target.
Focus Shifts to U.S. Inflation Figures
Wednesday’s key economic release from the U.S. will be the July Consumer Price Index. Consumer prices declined 0.4% in June from the previous month but were 3.5% higher than the same period last year. Energy prices rose 15.7% over 12 months, with food prices increasing 3%. The July CPI will serve as the latest official measure of consumer inflation while bullion trades at its most robust level in over two months.
Following June’s final-demand producer prices dropping 0.3%, the Producer Price Index for July is due Thursday. Gold maintained strong momentum after a 2.4% surge on Friday, adding a further 0.8% on Monday to reach $4,376.56 an ounce. Prices had earlier dipped after touching a seven-week high but recovered before the close. Tuesday’s advance took gold above $4,400, continuing its three-day rise.
Broad Rise in Precious Metals
Tuesday’s trading also saw gains for silver, platinum, and palladium. Spot silver increased 0.9% to $66.30 an ounce, platinum went up 0.7% to $1,765.26, and palladium rose 0.8% to $1,394.00. These broader gains occurred amid a busy week filled with U.S. inflation reports and ongoing focus on monetary policy. Gold remains the leading metal, reaching its highest point since early June and extending the recovery that began after Friday’s employment data.
Tuesday’s upward move marked a reversal from gold’s brief dip at the start of Monday’s trading session. After retreating from its seven-week peak, bullion rebounded and finished higher, pushing the spot price above $4,400 for the first time in more than two months. Prices remain below the January 2026 record above $5,500 an ounce. The market now anticipates two more U.S. inflation reports this week, starting with consumer prices on Wednesday.