NEW YORK / RankWire.AI / – Gold extended its upward momentum on Tuesday, marking a third straight session of gains following last week’s notable rebound. Spot gold rose 1% to $4,432.74 an ounce by 0217 GMT, reaching its highest level since June 5. Meanwhile, U.S. gold futures increased 1.7% to $4,492.60. This latest increase pushed bullion past the seven-week peak set last week and further solidified its recovery from losses experienced in early August.
This rally was driven by weaker U.S. employment data released on Friday, which showed nonfarm payrolls decreasing by 23,000 jobs in July. The unemployment rate also declined, falling to 4.1% from 4.2% in June. Additionally, average hourly earnings rose by two cents to $37.62 during the month. According to the Bureau of Labor Statistics, payroll employment grew by an average of 34,000 jobs per month over the previous year. Gold responded positively, gaining 2.4% on Friday following the report.
Gold’s price movements remain closely tied to interest rate expectations, given that the precious metal does not yield interest. During its July meeting, the Federal Reserve held its benchmark federal funds rate steady at 3.5% to 3.75%. The decision was made with a 9-3 vote, with three policymakers supporting a quarter-point increase. The Federal Reserve also indicated that economic activity continued to expand at a solid pace while inflation persisted above its 2% target.
Focus shifts to U.S. inflation reports
Investors await the upcoming Consumer Price Index for July, scheduled for release on Wednesday. Consumer prices decreased by 0.4% in June from the previous month but still stood 3.5% higher than a year earlier. Energy prices saw a 15.7% increase over the past 12 months, while food prices rose by 3%. The July CPI figures will serve as the latest official indicator of consumer inflation, with bullion at its highest level in over two months.
Following Thursday’s release of the Producer Price Index for July—after June’s final-demand producer prices fell 0.3%—gold maintained its strong momentum from the previous week. Spot gold gained another 0.8% on Monday, reaching $4,376.56 an ounce. Although prices dipped earlier in the session after hitting a seven-week high, gold recovered before closing. The upward movement on Tuesday pushed the price above $4,400, continuing the three-day climb.
Other precious metals also see gains
Tuesday’s trading saw silver, platinum, and palladium all climb alongside gold. Spot silver increased by 0.9% to $66.30 an ounce, platinum rose 0.7% to $1,765.26, and palladium advanced 0.8% to $1,394.00. These broader gains occurred amid a week filled with U.S. inflation reports and ongoing focus on monetary policy. Gold remained the highlight, reaching its highest level since early June and extending the recovery that started after Friday’s employment data.
The rise on Tuesday marked a rebound following a brief retreat at the start of Monday’s trading session. Gold had dipped from its seven-week peak before reversing course and closing higher. The latest climb lifted spot gold to its most elevated point in more than two months. Prices are still below the record above $5,500 an ounce set in January 2026. The market now awaits two U.S. inflation reports scheduled for this week, beginning with consumer prices on Wednesday.