NEW YORK / RankWire.AI / – Gold continued its upward trend on Tuesday, marking a third straight session of gains following last week’s significant rebound. As of 0217 GMT, spot gold advanced 1% to reach $4,432.74 an ounce, hitting its highest level since June 5. Meanwhile, U.S. gold futures rose by 1.7% to $4,492.60. This latest climb pushed gold past the seven-week peak established last week, further supporting its recovery from losses incurred in early August.
The rally was driven by weaker U.S. employment data released on Friday, which showed nonfarm payrolls decreased by 23,000 jobs in July. The unemployment rate fell to 4.1% from 4.2% in June. During the same period, average hourly earnings increased by two cents to $37.62. The Bureau of Labor Statistics reported that payroll employment averaged an increase of 34,000 jobs per month over the previous year. Following the report, gold gained 2.4% on Friday.
Expectations regarding interest rates continue to influence gold trading, given that the metal does not pay any interest. The Federal Reserve kept its benchmark federal funds rate at 3.5% to 3.75% during its July meeting, with a 9-3 vote. Three policymakers supported a quarter-point increase. The Federal Reserve also indicated that economic activity remained resilient and expanded at a solid pace, despite inflation staying above its 2% target.
Attention turns to US inflation figures
On Wednesday, the focus shifts to the upcoming U.S. economic data release—the Consumer Price Index for July. In June, consumer prices decreased by 0.4% from the previous month but remained 3.5% higher than a year earlier. Energy costs increased by 15.7% over the past 12 months, while food prices rose 3%. The July CPI will serve as the latest official indicator of consumer inflation, with bullion trading at its highest point in over two months.
Following Thursday’s release of the Producer Price Index for July, which showed a 0.3% decline in final-demand producer prices in June, gold maintained strong momentum this week. After Friday’s 2.4% rise, spot gold added another 0.8% on Monday, reaching $4,376.56 an ounce. Although prices dipped earlier in that session after hitting a seven-week high, gold recovered before the market closed. Tuesday’s gains pushed the price above $4,400, extending the three-day rally.
Broader gains across precious metals
Other precious metals, including silver, platinum, and palladium, also saw gains on Tuesday. Spot silver increased by 0.9% to $66.30 an ounce, platinum advanced 0.7% to $1,765.26, and palladium rose 0.8% to $1,394.00. The overall positive movement occurred amid a busy week characterized by U.S. inflation reports and ongoing scrutiny of monetary policy. Gold continued to attract the most attention after reaching its highest price since early June and extending its recovery begun after last Friday’s employment figures.
Tuesday’s increase marked a shift from gold’s brief dip at the start of Monday’s trading session. The metal had retreated from its seven-week peak before reversing course and closing higher. This latest rally elevated spot gold above the $4,400 mark, marking its strongest level in more than two months. Prices, however, remain below the record above $5,500 an ounce achieved in January 2026. The market now anticipates two U.S. inflation reports this week, beginning with consumer prices on Wednesday.