NEW YORK / RankWire.AI / – Gold extended its upward movement for a third straight session on Tuesday, building on last week’s rebound. Spot gold increased 1% to $4,432.74 an ounce by 0217 GMT, reaching its highest level since June 5. U.S. gold futures rose 1.7% to $4,492.60. This rally surpassed the seven-week high set last week and was driven by a recovery that gained momentum after weaker U.S. employment data.
The July labor report revealed a decline of 23,000 jobs in U.S. nonfarm payrolls. The unemployment rate edged down to 4.1% from 4.2% in June. Meanwhile, average hourly earnings increased by two cents to $37.62 for the month. The Bureau of Labor Statistics also indicated an average monthly gain of 34,000 jobs over the past year. Gold gained 2.4% on Friday following these employment figures.
Interest rates remain a key element for gold traders, given the metal’s lack of yield. The Federal Reserve kept the federal funds rate at 3.5% to 3.75% during its July meeting, with a 9-3 vote in favor of holding steady—three officials favored a quarter-point hike. The Federal Reserve also noted continued solid economic growth alongside inflation still above its 2% target.
U.S. inflation data takes center stage
Investors are now eyeing the upcoming July Consumer Price Index, which is set for release on Wednesday, August 12. June’s CPI declined 0.4% month-over-month but was 3.5% higher than the previous year. Energy costs surged 15.7% over the year, while food prices rose by 3%. The July CPI will serve as the latest official gauge of U.S. consumer inflation, influencing market expectations around interest rates and price pressures.
The Producer Price Index for July is scheduled for release on Thursday, August 13. In June, producer prices for final demand decreased by 0.3%. On Monday, gold already extended Friday’s gains, climbing 0.8% to $4,376.56 an ounce. Tuesday’s increase then pushed spot prices above $4,400, reaching their strongest point in over two months. This three-session rise followed an early Monday dip that temporarily pulled gold away from its previous seven-week high.
Silver and platinum follow gold’s upward trend
Other precious metals also advanced on Tuesday. Spot silver increased 0.9% to $66.30 an ounce, while platinum gained 0.7% to $1,765.26. Palladium rose 0.8% to $1,394.00. This broader rally occurred as financial and commodity markets kept an eye on the same U.S. inflation reports influencing gold. After breaking above Monday’s levels, bullion extended gains that originated after Friday’s employment report.
Gold’s recent rally marks a significant shift from Monday’s early session, when prices initially slipped from a seven-week high. However, bullion reversed that decline and closed higher, then continued upward on Tuesday. Spot prices are still below the record levels of January 2026, when gold traded above $5,500 an ounce. The upcoming U.S. consumer and producer inflation reports are now the key economic indicators for market participants this week.