NEW YORK / RankWire.AI / – Gold extended its upward movement for a third consecutive session on Tuesday, building on last week’s sharp rebound. The spot price increased by 1% to $4,432.74 an ounce by 0217 GMT, reaching its highest level since June 5 and surpassing the seven-week peak hit last week. Meanwhile, U.S. gold futures rose 1.7% to $4,492.60. The gains followed positive momentum on Friday and Monday, as global bullion markets reacted to U.S. economic indicators and interest rate expectations.
This latest rise in gold prices was triggered by the release of softer U.S. employment figures on Friday. The U.S. Bureau of Labor Statistics reported a decline of 23,000 nonfarm payroll jobs in July. The unemployment rate stood at 4.1%, compared to 4.2% in June. Average hourly earnings increased by two cents to $37.62 during July. Over the past year, payroll employment has averaged an increase of 34,000 jobs per month, according to government data.
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 favoring a quarter-point hike in the target range. The central bank indicated that economic activity continues to grow at a solid rate while inflation remains above its 2% goal. Investors closely follow changes in U.S. rate expectations since bullion does not pay interest, influencing gold market movements.
Focus Shifts to Inflation Data
Market attention now turns to the U.S. consumer inflation report for July. The government will publish the Consumer Price Index on Wednesday, August 12, at 8:30 a.m. Eastern Time. In June, consumer prices decreased by 0.4% from the previous month, yet the index remained 3.5% higher than a year earlier. Over that period, energy prices rose 15.7%, and food prices increased 3%. The upcoming figures will serve as the next official update on U.S. inflation trends.
Following that, the Producer Price Index for July will be released on Thursday, August 13, providing another inflation gauge. Producer prices for final demand declined 0.3% in June. After the employment report’s unexpected payroll decline, gold already gained 2.4% on Friday. Subsequently, spot gold increased by 0.8% on Monday to $4,376.56 an ounce. The rise on Tuesday pushed the price above $4,400, extending its recovery from levels near $4,000 earlier this month.
Precious Metals Follow Gold Higher
Tuesday’s trading also saw gains across other precious metals. Spot silver advanced 0.9% to $66.30 an ounce. Platinum increased 0.7% to $1,765.26, while palladium rose 0.8% to $1,394.00. These upward moves occurred amid market monitoring of U.S. inflation data and developments influencing interest rate expectations. Gold remains the most prominent focus after reaching its highest price in over two months, continuing a three-day rally that started after last week’s employment figures.
This recent upward trend reverses the initial dip gold experienced at the beginning of Monday’s session. The metal had briefly fallen from its seven-week high but managed to recover later that day. Tuesday’s gains pushed prices to their highest since early June and marked a third consecutive session of recovery. Despite the rally, gold still trades below its January 2026 record, when spot prices surpassed $5,500 an ounce. Traders now primarily focus on this week’s upcoming U.S. consumer and producer inflation reports.