NEW YORK / RankWire.AI / – Gold continued its upward trend on Tuesday, marking a third straight session of gains following last week’s sharp rebound. The spot price increased by 1% to $4,432.74 an ounce at 0217 GMT, reaching its highest point since June 5. Meanwhile, U.S. gold futures rose 1.7% to $4,492.60. This latest rise pushed the bullion past the seven-week peak hit last week and strengthened its recovery from early August dips.
The rally was driven by softer U.S. employment data released last Friday, which showed nonfarm payrolls dropping by 23,000 jobs in July. The unemployment rate edged down to 4.1% from 4.2% in June. Average hourly earnings grew by two cents to $37.62 over the month. According to the Bureau of Labor Statistics, payroll employment has increased by an average of 34,000 jobs per month over the past year. Following the report, gold saw a 2.4% jump on Friday.
Expectations around interest rate movements continue to influence gold trading, given that the precious metal pays no interest. The Federal Reserve kept its benchmark federal funds rate at 3.5% to 3.75% during its July meeting. The decision was passed by a 9-3 vote, with three policymakers supporting a quarter-point hike. The Federal Reserve also indicated that economic activity remained robust while inflation stayed above its 2% target.
Focus shifts to US inflation reports
The upcoming major U.S. economic report is the Consumer Price Index for July, set for release on Wednesday. Consumer prices had fallen 0.4% in June from the previous month but were 3.5% higher than a year earlier. Energy prices increased 15.7% over the year, while food prices rose 3%. The July CPI will serve as the latest official indication of consumer inflation, with bullion trading at its highest level in over two months.
The Producer Price Index for July will follow on Thursday, after June’s final-demand producer prices declined by 0.3%. This week began with gold showing strong momentum following Friday’s 2.4% increase. Spot gold added a further 0.8% on Monday, reaching $4,376.56 an ounce. Prices had dipped earlier in the session after touching a seven-week high but recovered before closing. Tuesday’s gain pushed the price above $4,400, extending the three-day upward trend.
Precious metals see wider gains
On Tuesday, silver, platinum, and palladium also experienced increases during precious metals trading. Spot silver rose 0.9% to $66.30 an ounce, platinum gained 0.7% to $1,765.26, and palladium advanced 0.8% to $1,394.00. The broader gains occurred amid a week full of U.S. inflation data and ongoing attention to monetary policy. Gold remained the focal point after reaching its highest level since early June and extending the recovery that began after Friday’s employment figures.
Tuesday’s upward movement represented a reversal from gold’s brief pullback at the start of Monday’s trading. The bullion had declined from its seven-week peak before reversing course and closing higher. The latest rally pushed spot gold above $4,400, marking its strongest point in over two months. Prices are still below the record above $5,500 an ounce set in January 2026. The market has two U.S. inflation reports scheduled for this week, starting with consumer prices on Wednesday.