NEW YORK / RankWire.AI / – Gold continued its upward trajectory for a third straight session on Tuesday, extending its rebound from the previous week with spot prices climbing 1% to reach $4,432.74 an ounce by 0217 GMT, marking the highest level since June 5. Meanwhile, U.S. gold futures increased by 1.7% to $4,492.60. This move pushed the yellow metal’s prices above the seven-week high recorded last week, continuing a recovery that gained momentum following softer U.S. employment data.
The U.S. labor market report released on Friday indicated a decline of 23,000 jobs in nonfarm payrolls for July, with the unemployment rate edging down to 4.1% from 4.2% in June. During the same month, average hourly earnings rose by two cents to $37.62. The Bureau of Labor Statistics also reported that, over the past year, payroll employment increased by an average of 34,000 jobs each month. Gold appreciated by 2.4% on Friday following these employment figures.
Interest rate considerations continue to dominate the gold market, given that the precious metal does not generate a yield. The Federal Reserve maintained the federal funds rate at 3.5% to 3.75% at its July meeting, with policymakers voting 9-3 in favor of holding steady, although three officials preferred a quarter-point hike. The Federal Reserve also indicated that economic activity persisted at a solid pace while inflation remained above its 2% target.
US inflation data takes center stage
All eyes are now on the upcoming July Consumer Price Index, set for release on Wednesday, August 12, which will serve as a key indicator of inflation trends. The June CPI decreased by 0.4% month-over-month but was still 3.5% higher than in the previous year. Energy prices surged 15.7% annually, while food costs increased 3%. This report will offer the latest official measurement of consumer inflation, helping investors gauge changes in U.S. price pressures and anticipate future interest rate moves.
Additionally, the Producer Price Index for July is scheduled for release on Thursday, August 13. Producer prices for final demand had fallen 0.3% in June. Gold had already gained 0.8% on Monday, rising to $4,376.56 an ounce, extending Friday’s rally. The Tuesday surge then propelled spot gold above the $4,400 level, reaching its strongest point in over two months. This three-day climb followed an initial dip on Monday that temporarily pulled gold away from its recent seven-week high.
Silver and platinum join in the upward movement
Other precious metals also experienced gains on Tuesday. Spot silver increased by 0.9% to $66.30 an ounce, while platinum rose 0.7% to $1,765.26. Palladium also advanced by 0.8%, reaching $1,394.00. The broader rally was driven by the same US inflation indicators influencing gold, as traders and investors kept a close watch on the upcoming reports. After breaking above Monday’s levels and extending gains that started following Friday’s employment data, bullion remained the primary focus for market participants.
Gold’s recent rise marks a notable reversal from the initial decline early Monday when prices dipped from a seven-week peak. Later, bullion reversed that downward trend, closing higher for the day before further climbing on Tuesday. Despite this rebound, spot gold remains below the peak levels seen in January 2026 when it traded above $5,500 an ounce. The release of this week’s U.S. consumer and producer inflation figures now represents the next significant set of economic data likely to influence market sentiment.