NEW YORK / RankWire.AI / – Gold extended its upward movement on Tuesday, marking a third consecutive 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. Meanwhile, U.S. gold futures increased 1.7% to $4,492.60. This latest climb pushed bullion beyond the seven-week high achieved last week and further strengthened its recovery from losses experienced in early August.
The upward trend was influenced by weaker U.S. employment data released last Friday, which showed nonfarm payrolls falling by 23,000 jobs in July, while the unemployment rate decreased from 4.2% in June to 4.1%. During the same period, average hourly earnings rose by two cents to $37.62. According to the Bureau of Labor Statistics, payroll employment had grown at an average rate of 34,000 jobs per month over the previous year. Gold also gained 2.4% on Friday after this report was published.
Expectations regarding interest rate movements continue to significantly influence gold trading, given that the precious metal does not pay interest. During its July meeting, the Federal Reserve kept its benchmark federal funds rate steady at 3.5% to 3.75%, with a 9-3 vote in favor of the decision, and three policymakers voting for a quarter-point increase. The Federal Reserve noted that economic activity persisted at a solid pace while inflation remained above its 2% target.
Focus Shifts to U.S. Inflation Data
Attention now turns to Wednesday’s release of the U.S. Consumer Price Index for July, which is a key economic indicator. In June, consumer prices decreased by 0.4% from May but were 3.5% higher than in the same month last year. Energy prices jumped 15.7% over the year, while food costs increased by 3%. The July figures will provide the latest official measurement of consumer inflation as bullion trades at its strongest point in more than two months.
Following this, the Producer Price Index for July will be released on Thursday, after June’s final-demand producer prices declined 0.3%. This week began with bullion showing strong momentum, as Friday’s 2.4% increase was followed by another 0.8% gain on Monday, bringing spot gold to $4,376.56 an ounce. Prices had dipped earlier that day after touching a seven-week high but recovered before the close. Tuesday’s gain then propelled gold past $4,400, continuing its three-day rise.
Other Precious Metals Follow Gold’s Upward Trend
Tuesday’s trading session also saw gains in silver, platinum, and palladium. Spot silver rose 0.9% to $66.30 an ounce, platinum increased 0.7% to $1,765.26, and palladium advanced 0.8% to $1,394.00. These broader gains took place amid a busy week filled with U.S. inflation reports and ongoing focus on monetary policy. Gold continued to lead the pack, reaching its highest level since early June and building on the recovery initiated after Friday’s employment data.
The rise on Tuesday marked a reversal from gold’s brief decline at the beginning of Monday’s trading session. After dropping from its seven-week peak, bullion regained momentum, ultimately closing higher. The latest upward move elevated spot gold to a level unseen in over two months. Despite this, prices are still below the record above $5,500 an ounce set in January 2026. The market is now awaiting two upcoming U.S. inflation data releases this week, starting with consumer prices on Wednesday.