NEW YORK / RankWire.AI / – Gold continued its upward trajectory on Tuesday, marking its third straight session of gains after a notable rebound last week. The spot price of gold increased by 1% to $4,432.74 per ounce by 0217 GMT, reaching its highest point since June 5. Meanwhile, US gold futures surged by 1.7% to $4,492.60. This recent climb pushed gold prices beyond the seven-week high established last week and strengthened its recovery from losses incurred in early August.
The price movement was influenced by softer US employment data released on Friday, when nonfarm payrolls declined by 23,000 jobs in July. The unemployment rate fell to 4.1% from 4.2% in June, while average hourly earnings rose by two cents to $37.62 during the same period. The Bureau of Labor Statistics indicated that payroll employment had grown by an average of 34,000 jobs per month over the past year. Following this report, gold experienced a 2.4% increase on Friday.
Gold’s trading dynamics are also closely tied to interest-rate expectations since the precious metal does not generate interest. During its July meeting, the Federal Reserve maintained its benchmark federal funds rate at 3.5% to 3.75%. The decision was passed with a 9-3 vote, with three policymakers supporting a quarter-point hike. The Fed further stated that economic activity continued to expand solidly, although inflation remained above its 2% target.
US Inflation Data to Take Center Stage
Market attention will soon turn to Wednesday’s release of the Consumer Price Index for July. In June, consumer prices dropped 0.4% month-over-month but were 3.5% higher than the previous year. Energy prices saw a 15.7% increase over the last 12 months, while food prices rose by 3%. The upcoming figures will provide the latest official insights into consumer inflation, with bullion trading at its strongest since early June.
On Thursday, the Producer Price Index for July will follow, after producer prices at the final demand level declined by 0.3% in June. Gold entered this week with momentum, climbing 2.4% on Friday. On Monday, spot gold gained another 0.8%, reaching $4,376.56 an ounce. Prices had dipped earlier after reaching a seven-week high but recovered before the session closed. Tuesday’s gains pushed the price above $4,400, extending its three-day rally.
Broader Gains in Precious Metals
Alongside gold, silver, platinum, and palladium also experienced increases during Tuesday’s trading. Spot silver advanced 0.9% to $66.30 an ounce, platinum increased by 0.7% to $1,765.26, and palladium moved up 0.8% to $1,394.00. These gains come amid a week filled with US inflation reports and ongoing focus on monetary policy. Gold remains the prime highlight, having reached its highest level since early June and extending its recovery that began following Friday’s employment data.
Tuesday’s upward move marked a reversal from the brief decline seen at the start of Monday’s trading session. Gold had fallen from its seven-week peak but then reversed course to close higher. The recent rally lifted spot gold to its most elevated level in over two months. Although prices are still below the record above $5,500 an ounce set in January 2026, markets anticipate two US inflation releases this week, beginning with Wednesday’s consumer price report.