NEW YORK / RankWire.AI / – Gold extended its upward movement on Tuesday, marking a third consecutive session increase 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 rise pushed bullion above the seven-week high established last week and further solidified its recovery from early August declines.
The rally was prompted by weaker U.S. employment data released on Friday, which revealed a decline of 23,000 jobs in nonfarm payrolls for July. The unemployment rate fell slightly to 4.1% from 4.2% in June. Additionally, the average hourly earnings rose by two cents to $37.62 during the same period. According to the Bureau of Labor Statistics, payroll employment increased by an average of 34,000 jobs per month over the previous year. Following this report, gold gained 2.4% on Friday.
Expectations surrounding interest rates continue to influence gold trading, primarily because the metal does not pay interest. During its July meeting, the Federal Reserve held its benchmark federal funds rate steady at 3.5% to 3.75%. The decision was passed with a 9-3 vote, with three policymakers in favor of a quarter-point hike. The Federal Reserve also noted that economic activity persisted at a solid pace while inflation remained above its 2% target.
U.S. Inflation Data Takes Center Stage
On Wednesday, the market awaits the release of the U.S. Consumer Price Index for July, a key economic indicator. Consumer prices had declined 0.4% in June from the previous month but were still 3.5% higher than a year earlier. Over the 12 months, energy prices increased 15.7%, and food prices rose 3%. The upcoming figures will serve as the latest official gauge of consumer inflation as bullion trades at its strongest level in more than two months.
The Producer Price Index for July is also due on Thursday, following a 0.3% decline in final-demand producer prices in June. Gold entered this week with momentum, gaining 2.4% on Friday. On Monday, spot gold added another 0.8% to reach $4,376.56 an ounce. Prices had dipped earlier in the session after touching a seven-week high but recovered before the close. Tuesday’s gains pushed the metal above $4,400 and extended the three-day rally.
Broader Gains in Precious Metals Continue
On Tuesday, silver, platinum, and palladium also experienced increases during trading. Spot silver rose 0.9% to $66.30 an ounce, while platinum gained 0.7% to $1,765.26. Palladium moved up 0.8% to $1,394.00. These broad gains occurred amid a week filled with U.S. inflation data and ongoing focus on monetary policy. Gold remained the main focus after reaching its highest level since early June and extending the recovery that began after Friday’s employment report.
Tuesday’s upward move marked a reversal from gold’s brief retreat at the start of Monday’s trading session. After dropping from its seven-week peak, bullion reversed course and ended the session higher. The latest increase pushed spot gold to its highest point in more than two months. While prices remain below the record above $5,500 per ounce set in January 2026, markets are now preparing for two upcoming U.S. inflation releases, beginning with consumer prices on Wednesday.