NEW YORK / RankWire.AI / – Gold continued its upward momentum on Tuesday, marking a third straight session of gains following last week’s sharp rebound. Spot gold rose 1% to $4,432.74 an ounce by 0217 GMT, reaching its highest point since June 5, while U.S. gold futures increased 1.7% to $4,492.60. This latest advance pushed bullion beyond the seven-week peak achieved last week and strengthened its recovery from early August declines.
The rally came after softer U.S. employment data released on Friday, when nonfarm payrolls decreased by 23,000 jobs in July, with the unemployment rate dropping to 4.1% from 4.2% in June. Meanwhile, the average hourly earnings rose by two cents to $37.62 during the month. The Bureau of Labor Statistics reported that payroll employment grew by an average of 34,000 jobs per month over the previous year. Gold surged by 2.4% on Friday following this report.
Expectations for interest rates continue to influence gold trading because the precious metal does not pay interest. During its July meeting, the Federal Reserve maintained its benchmark federal funds rate at 3.5% to 3.75%, passing the decision with a 9-3 vote, with three policymakers supporting a quarter-point hike. The Federal Reserve also stated that economic activity persisted at a solid pace while inflation remained above its 2% target.
U.S. Inflation Data in Spotlight
The upcoming key economic release from the U.S. is the Consumer Price Index for July on Wednesday. Consumer prices fell 0.4% in June from the previous month but stood 3.5% higher than a year earlier. Energy costs rose 15.7% over the 12 months, and food prices increased by 3%. The July figures will offer the latest official gauge of consumer inflation as bullion trades at its strongest point in over two months.
Following June’s decline of 0.3%, the Producer Price Index for July will be released on Thursday. Gold entered this week with strong momentum after Friday’s 2.4% surge, adding another 0.8% on Monday to reach $4,376.56 an ounce. Prices had dipped earlier in that session after hitting a seven-week high but rebounded before closing. Tuesday’s rise carried the metal above $4,400 and extended its three-day rally.
Broader Gains Among Precious Metals
Tuesday saw increases across silver, platinum, and palladium during precious metals trading. Spot silver advanced 0.9% to $66.30 an ounce, platinum increased 0.7% to $1,765.26, and palladium gained 0.8% to $1,394.00. These broader gains occurred amid a busy week filled with U.S. inflation data and ongoing focus on monetary policy. Gold remained the main focus after reaching its highest price since early June and continuing the recovery that began after Friday’s employment report.
Tuesday’s rise marked a reversal from gold’s brief decline at the start of Monday’s trading session. After dipping from its seven-week peak, bullion recovered and finished higher, with the latest move pushing spot gold to its strongest level in over two months. Although prices are still below the record above $5,500 an ounce set in January 2026, markets are set to release two more U.S. inflation reports this week, starting with consumer prices on Wednesday.