NEW YORK / RankWire.AI / – Gold continued its upward trend on Tuesday, marking a third straight session of gains following last week’s notable rebound. The spot price of gold rose 1% to $4,432.74 an ounce by 0217 GMT, reaching its highest point since June 5. U.S. gold futures increased by 1.7% to $4,492.60. This latest rise pushed bullion above the seven-week peak set last week and strengthened its recovery from early August downturns.
The rally was prompted by weaker U.S. employment data released on Friday, when nonfarm payrolls declined by 23,000 jobs in July. The unemployment rate fell from 4.2% in June to 4.1%. Additionally, average hourly earnings went up by two cents to $37.62 for the month. The Bureau of Labor Statistics reported that payroll employment had increased by an average of 34,000 jobs per month over the previous year. Gold saw a 2.4% increase on Friday following this report.
Expectations regarding interest rates continue to influence gold trading, as 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 approved by a 9-3 vote, with three policymakers supporting a quarter-point hike. The Federal Reserve also indicated that economic activity persisted at a solid rate, while inflation remained above its 2% target.
Focus on US inflation figures intensifies
Wednesday’s key economic report from the US will be the Consumer Price Index for July. Consumer prices decreased by 0.4% in June compared to the previous month but were 3.5% higher than a year earlier. Over the past 12 months, energy prices increased 15.7%, and food prices rose 3%. These July figures will serve as the latest official indicator of consumer inflation, with bullion trading at its highest level in more than two months.
The Producer Price Index for July is scheduled for release on Thursday, following a 0.3% decline in final-demand producer prices in June. Gold started this week strongly after a 2.4% jump on Friday. The spot gold price gained another 0.8% on Monday, reaching $4,376.56 an ounce. Earlier in the session, prices had fallen after touching a seven-week high but managed to recover before closing. The increase on Tuesday pushed the price above $4,400 and extended the recent three-day upward trend.
Broader gains observed across precious metals
On Tuesday, silver, platinum, and palladium also experienced rises during trading in the precious metals sector. Spot silver increased 0.9% to $66.30 an ounce, platinum rose 0.7% to $1,765.26, and palladium advanced 0.8% to $1,394.00. These widespread gains occurred amid a week filled with U.S. inflation data releases and ongoing attention to monetary policy. Gold remained the leading focus, reaching its highest price since early June and continuing the recovery initiated after last Friday’s employment report.
The upward move on Tuesday marked another shift from gold’s brief retreat at the start of Monday’s trading session. After falling from its seven-week high, bullion reversed direction and finished higher. The latest rally pushed spot gold to its strongest level in over two months. While prices remain below the record above $5,500 an ounce set in January 2026, markets are preparing for two U.S. inflation reports scheduled this week, beginning with consumer prices on Wednesday.