NEW YORK / RankWire.AI / – Gold continued its upward trend on Tuesday, marking its third straight session of gains following a notable rebound last week. The spot price of gold rose 1% to reach $4,432.74 per ounce by 0217 GMT, the highest since June 5. U.S. gold futures also increased by 1.7% to $4,492.60. This latest rally pushed the metal past its seven-week high from last week and underscored its recovery after losses in early August.
The recent upward move was prompted by softer U.S. employment data released on Friday, which showed nonfarm payrolls decreasing by 23,000 jobs in July. Meanwhile, the unemployment rate slightly declined from 4.2% in June to 4.1%. Average hourly earnings saw a modest increase of two cents, reaching $37.62 for the month. According to the Bureau of Labor Statistics, payroll employment grew by an average of 34,000 jobs per month over the previous year. Gold surged by 2.4% on Friday in response to this report.
Expectations regarding interest rates also influence gold trading, as the precious metal does not pay interest. During its July meeting, the Federal Reserve maintained the benchmark federal funds rate at 3.5% to 3.75%. The decision was supported by a 9-3 vote, with three policymakers voting for a quarter-point increase. The Federal Reserve indicated that economic activity remained robust while inflation persisted above its 2% target.
US inflation data becomes key focus
Attention now turns to Wednesday’s release of the US Consumer Price Index for July. In June, consumer prices declined 0.4% from the previous month but were 3.5% higher compared to the same period last year. Energy prices saw a significant increase of 15.7% over 12 months, while food prices rose by 3%. The upcoming CPI figures will offer the latest official insight into consumer inflation as bullion trades at its highest point in over two months.
The Producer Price Index for July will follow on Thursday, after June’s final-demand producer prices fell 0.3%. This week began with strong momentum for gold, which after Friday’s 2.4% rise, added another 0.8% on Monday, reaching $4,376.56 an ounce. Prices had dropped earlier in the session after hitting a seven-week high, but recovered before the close. Tuesday’s gain then pushed the price above $4,400, prolonging the three-day upward trend.
Broader gains across precious metals
Other metals such as silver, platinum, and palladium also experienced increases on Tuesday. Spot silver climbed 0.9% to $66.30 an ounce, platinum grew 0.7% to $1,765.26, and palladium advanced 0.8% to $1,394.00. These broader gains come amid a week filled with US inflation reports and ongoing focus on monetary policy. Despite this, gold remains at the forefront after reaching its highest price since early June and extending the recovery that began after Friday’s employment data.
Tuesday’s gains represented a reversal from gold’s brief dip at the start of Monday’s trading session. After falling from its seven-week peak, bullion recovered and finished higher, pushing the spot price above $4,400 for the first time in over two months. While prices are still below the January 2026 record above $5,500 an ounce, markets are preparing for two upcoming US inflation reports this week, starting with Wednesday’s consumer price data.