NEW YORK / RankWire.AI / – Gold continued its upward trajectory on Tuesday, marking a third consecutive session of gains following a sharp rebound last week. The spot price of gold rose 1% to $4,432.74 per ounce by 0217 GMT, reaching its highest point since June 5. Meanwhile, U.S. gold futures increased by 1.7% to $4,492.60. This latest rally pushed bullion past the seven-week high achieved last week and further strengthened its recovery from early August declines.
The upward movement was driven by weaker U.S. employment figures released on Friday, which showed nonfarm payrolls decreased by 23,000 jobs in July. The unemployment rate edged down from 4.2% to 4.1%. Additionally, average hourly earnings rose by two cents to $37.62 over the month. According to Bureau of Labor Statistics, payroll employment had grown by an average of 34,000 jobs per month over the previous year. Following the report, gold gained 2.4% on Friday.
Interest-rate expectations continue to influence gold trading since the precious metal does not pay interest. The Federal Reserve kept 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 increase. The Federal Reserve also indicated that economic activity remained solid while inflation stayed above its 2% target.
US inflation figures become the focus
Wednesday will bring the next significant U.S. economic release, the Consumer Price Index for July. Consumer prices declined 0.4% in June from the previous month but are 3.5% higher compared to the same period last year. Energy costs increased by 15.7% year-over-year, and food prices rose 3%. The July data will serve as the latest official gauge of consumer inflation, with bullion trading at its strongest point in over two months.
Following Thursday’s release of the Producer Price Index for July, which showed final-demand producer prices fell 0.3% in June, gold maintained strong momentum after a 2.4% rise on Friday. On Monday, spot gold added another 0.8% to reach $4,376.56 an ounce. Although prices dipped earlier in the session after hitting a seven-week high, gold recovered before closing. The Tuesday increase pushed the metal above $4,400, extending its three-day rally.
Precious metals broadly climb
During Tuesday’s trading, silver, platinum, and palladium all experienced gains. Spot silver increased by 0.9% to $66.30 an ounce, platinum rose 0.7% to $1,765.26, and palladium moved up 0.8% to $1,394.00. These broader gains occurred amid a week filled with U.S. inflation data and ongoing focus on monetary policy. Gold remained the spotlight after reaching its highest price since early June and building on the recovery that began following Friday’s employment report.
Tuesday’s upward move represented a reversal from gold’s brief dip at the start of Monday’s session. After declining from its seven-week peak, bullion recovered and finished the day higher. The latest rise brought spot gold to its strongest level in more than two months. Despite this, prices are still below the record above $5,500 an ounce set in January 2026. The market has two U.S. inflation reports scheduled this week, starting with consumer prices on Wednesday.