NEW YORK / RankWire.AI / – Gold extended its upward momentum for a third consecutive session on Tuesday, building on the sharp rebound seen last week. Spot gold increased 1% to $4,432.74 an ounce by 0217 GMT, reaching its highest point since June 5 and surpassing the seven-week peak achieved last week. U.S. gold futures also rose 1.7% to $4,492.60. This rally followed gains on Friday and Monday as global bullion markets responded to U.S. economic indicators and interest-rate outlooks.
The recent movement in gold prices was influenced by weaker U.S. employment data released on Friday. The U.S. Bureau of Labor Statistics reported a decline of 23,000 jobs in nonfarm payrolls for July. The unemployment rate stood at 4.1%, down from 4.2% in June. During July, average hourly earnings increased by two cents to $37.62. Over the past year, payroll employment had grown by an average of 34,000 jobs per month, according to official government figures.
At its July meeting, the Federal Reserve maintained its benchmark federal funds rate at a range of 3.5% to 3.75%. The decision was made with a 9-3 vote, with three policymakers favoring a quarter-point increase in the target range. The central bank indicated that economic activity remains robust, but inflation continues to stay above its 2% target. Because bullion does not pay interest, changes in U.S. rate expectations heavily influence gold markets.
Focus shifts to upcoming inflation reports
Market attention now centers on the upcoming U.S. consumer inflation report for July. The government will release the Consumer Price Index on Wednesday, August 12, at 8:30 a.m. Eastern Time. In June, consumer prices decreased by 0.4% compared to the previous month, yet the index remained 3.5% higher than the same period last year. Energy prices rose 15.7% over the year, while food costs increased by 3%. The July data will serve as the next key indicator of U.S. inflation trends.
The Producer Price Index for July will follow on Thursday, August 13, offering another perspective on inflation. In June, producer prices for final demand declined by 0.3%. After the employment report’s unexpected payroll decline, gold had already gained 2.4% on Friday. Spot gold then rose 0.8% on Monday to $4,376.56 an ounce. Tuesday’s increase pushed the metal above $4,400 and extended its recovery from levels close to $4,000 earlier this month.
Other precious metals also gain ground alongside gold
Tuesday’s trading saw gains across several other precious metals. Spot silver increased by 0.9% to $66.30 an ounce. Platinum rose 0.7% to $1,765.26, while palladium advanced 0.8% to $1,394.00. These movements occurred amid market monitoring of U.S. inflation data and developments affecting interest-rate expectations. Gold remained the primary focus, reaching its highest price in over two months and extending a three-day rally that started after last week’s employment figures.
This latest rise marks a significant turnaround from gold’s early Monday decline, when prices initially slipped from a seven-week high before later recovering. The rally on Tuesday pushed prices to their highest point since early June, marking a third consecutive session of gains. Despite this, gold remains below its January 2026 peak, when spot prices exceeded $5,500 an ounce. The market’s immediate focus now shifts to this week’s scheduled U.S. consumer and producer inflation figures.