NEW YORK / RankWire.AI / – Gold moved higher again on Tuesday, marking a third straight session of gains after last week’s significant rebound. Spot gold rose 1% to $4,432.74 an ounce by 0217 GMT, reaching its highest point since June 5. Meanwhile, U.S. gold futures increased 1.7% to $4,492.60. This latest surge pushed bullion above the seven-week peak seen last week and strengthened its recovery from losses incurred in early August.
The rise followed the release of weaker U.S. employment data on Friday, which showed nonfarm payrolls dropping by 23,000 jobs in July. The unemployment rate decreased to 4.1% from 4.2% in June. During the same period, average hourly earnings grew by two cents to $37.62. According to the Bureau of Labor Statistics, payroll employment grew by an average of 34,000 jobs per month over the previous year. Gold saw a 2.4% increase on Friday after this report was published.
Expectations regarding interest rates continue to influence gold trading, given that the metal does not pay interest. The Federal Reserve maintained its benchmark federal funds rate at 3.5% to 3.75% during its July meeting. The decision was approved with a 9-3 vote, with three policymakers supporting a quarter-point hike. The Federal Reserve also noted that economic activity kept expanding at a solid rate, even as inflation stayed above its 2% target.
U.S. Inflation Data Becomes the Focus
Wednesday will bring the release of the July Consumer Price Index, the next key economic indicator from the U.S. Consumer prices declined by 0.4% in June compared to the previous month but remained 3.5% higher than a year earlier. Energy prices rose 15.7% over the past 12 months, while food costs increased by 3%. The July figures will serve as the latest official measure of consumer inflation, with bullion trading at its highest level in over two months.
Following on Thursday, the Producer Price Index for July will be released after June’s final-demand producer prices fell 0.3%. Gold entered this week with strong momentum after rising 2.4% on Friday. On Monday, spot gold gained another 0.8% to reach $4,376.56 an ounce. Prices had dipped earlier in the session after touching a seven-week high but recovered before closing. Tuesday’s advance pushed the metal above $4,400 and extended its three-day rise.
Precious Metals See Broader Gains
On Tuesday, silver, platinum, and palladium also increased during the precious metals trading session. Spot silver rose 0.9% to $66.30 an ounce, platinum gained 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 most prominent, reaching its highest price since early June and building on the recovery that began after Friday’s employment data.
Tuesday’s rally marked a reversal from gold’s brief decline at the start of Monday’s trading session. The bullion had dipped from its seven-week peak before turning around and finishing the day higher. The recent increase pushed spot gold to its strongest level in over two months. Although prices are below the record above $5,500 an ounce set in January 2026, markets now anticipate two U.S. inflation reports later this week, starting with Wednesday’s consumer prices data.