NEW YORK / RankWire.AI / – Gold continued its upward movement on Tuesday, marking a third straight session of gains after a notable rebound last week. Spot gold increased by 1% to reach $4,432.74 an ounce at 0217 GMT, its highest point since June 5. Meanwhile, U.S. gold futures rose 1.7% to $4,492.60. This latest gain pushed the bullion past its seven-week peak from last week, solidifying its recovery following early August declines.
The surge was prompted by weaker U.S. employment data released on Friday, where nonfarm payrolls fell by 23,000 jobs in July. The unemployment rate dropped to 4.1% from 4.2% in June. Average hourly earnings edged up by two cents to $37.62 during the month. According to the Bureau of Labor Statistics, payroll employment averaged an increase of 34,000 jobs per month over the previous year. Gold jumped 2.4% on Friday following this report.
Expectations for interest rate changes remain closely tied to gold movements since the metal does not pay interest. The Federal Reserve kept its benchmark federal funds rate at 3.5% to 3.75% during its July meeting. The decision was supported by a 9-3 vote, with three policymakers favoring a quarter-point increase. The Federal Reserve also indicated that economic activity continued to grow at a solid rate while inflation stayed above its 2% target.
Focus shifts to US inflation figures
The next key economic indicator from the U.S. is the Consumer Price Index for July, set to be released Wednesday. In June, consumer prices decreased by 0.4% from the previous month but were 3.5% higher than the same period last year. Energy prices rose 15.7% over the year, and food prices increased by 3%. The July data will offer the latest official measure of consumer inflation, as bullion remains at its highest level in more than two months.
Following this, the Producer Price Index for July will be released on Thursday, after producer prices at the final demand level declined 0.3% in June. Gold started the week strongly, after a 2.4% rise on Friday. Spot gold gained an additional 0.8% on Monday, reaching $4,376.56 an ounce. Prices had dipped earlier that session after hitting a seven-week high but recovered before the close. Tuesday’s gain pushed the price above $4,400, extending its three-day rally.
Broader precious metals markets gain momentum
On Tuesday, silver, platinum, and palladium also saw increases. Spot silver rose by 0.9% to $66.30 an ounce. Platinum gained 0.7% to $1,765.26. Palladium moved up 0.8% to $1,394.00. These broader gains happened amid a week filled with U.S. inflation reports and ongoing focus on monetary policy. Gold stayed in the spotlight after reaching its highest point since early June and extending the recovery initiated after Friday’s employment report.
The rise on Tuesday marked a reversal from gold’s brief dip at the start of Monday’s trading. The bullion had fallen from its seven-week high but then rebounded to close higher. The latest upward move lifted spot gold to its strongest level in more than two months. Although prices remain below the record above $5,500 an ounce set in January 2026, markets have two U.S. inflation releases scheduled this week, beginning with consumer prices on Wednesday.