NEW YORK / RankWire.AI / – Gold continued its upward trend on Tuesday, marking a third straight session of gains after a notable rebound last week. The spot price of gold increased by 1% to reach $4,432.74 per ounce by 0217 GMT, hitting its highest point since June 5. Meanwhile, U.S. gold futures climbed by 1.7% to $4,492.60. This latest escalation pushed the bullion past the seven-week high established last week and strengthened its recovery from losses experienced in early August.
The upward movement was influenced by weaker U.S. employment reports released on Friday, which showed nonfarm payrolls declined by 23,000 jobs in July. The unemployment rate dropped from 4.2% in June to 4.1%. Additionally, average hourly earnings saw a modest increase of two cents, reaching $37.62 during the month. According to the Bureau of Labor Statistics, payroll employment averaged 34,000 new jobs per month over the past year. Following the report, gold prices surged by 2.4% on Friday.
Market expectations regarding interest rates also continue to influence gold trading, given that the precious metal does not pay interest. During its July meeting, the Federal Reserve kept its benchmark federal funds rate unchanged at 3.5% to 3.75%. The decision was passed with a 9-3 vote, with three policymakers in favor of a quarter-point hike. The Federal Reserve also indicated that economic activity persisted at a solid pace, even as inflation remained above its 2% target.
Attention Turns to US Inflation Reports
The upcoming key economic release from the United States is the Consumer Price Index for July, scheduled for Wednesday. In June, consumer prices decreased by 0.4% compared to the previous month, but were still 3.5% higher than a year earlier. Energy costs rose sharply by 15.7% over the past year, while food prices increased by 3%. The July CPI data will serve as the latest official gauge of consumer inflation, with bullion trading at levels not seen in over two months.
The Producer Price Index for July will be released on Thursday, following June’s final-demand producer prices, which fell by 0.3%. Gold began this week with strong momentum after Friday’s 2.4% increase, and spot gold added an additional 0.8% on Monday to reach $4,376.56 an ounce. Earlier during that session, prices had dipped after touching a seven-week high but then recovered before the market closed. Tuesday’s gains pushed the price above $4,400 and extended the three-day upward trend.
Precious Metals See Broader Market Gains
Other precious metals, including silver, platinum, and palladium, also registered increases during Tuesday’s trading. Silver saw a 0.9% rise to $66.30 an ounce, platinum gained 0.7% to $1,765.26, and palladium advanced by 0.8% to $1,394.00. These broader gains occurred amid a busy week filled with U.S. inflation reports and ongoing focus on monetary policy. Gold remained the standout performer, reaching its highest level since early June and continuing its recovery trend initiated after Friday’s employment data.
Tuesday’s upward movement marked a reversal from gold’s brief pullback at the start of Monday’s trading session. The bullion had retreated from its seven-week peak before reversing course and closing higher for the day. This latest rise lifted spot gold above the $4,400 mark, making it the strongest level in more than two months. Despite this, prices are still below the all-time high above $5,500 an ounce recorded in January 2026. The market now anticipates two more U.S. inflation reports this week, starting with consumer prices on Wednesday.