NEW YORK / RankWire.AI / – Gold moved higher for the third straight session on Tuesday, extending its rebound from last week. Spot gold increased 1% to $4,432.74 an ounce by 0217 GMT, reaching its highest level since June 5. Meanwhile, U.S. gold futures rose 1.7% to $4,492.60. This rally pushed prices above the seven-week peak recorded last week and built on the recovery that gained momentum following weaker U.S. employment data.
The labor report released on Friday showed a decline of 23,000 jobs in U.S. nonfarm payrolls for July. The unemployment rate stood at 4.1%, down from 4.2% in June. During the month, average hourly earnings increased by two cents to $37.62. The Bureau of Labor Statistics also indicated that payroll employment grew by an average of 34,000 jobs per month over the previous year. Gold gained 2.4% on Friday after these employment figures were announced.
Interest rates remain a key factor influencing gold prices because the metal does not generate yield. The Federal Reserve maintained the federal funds rate at 3.5% to 3.75% during its July meeting. The decision was supported by a 9-3 vote, with three officials favoring a quarter-point hike. The Federal Reserve also noted that economic activity continued expanding at a solid pace, while inflation stayed above its 2% target.
US inflation data takes center stage
Investors now await the release of the July Consumer Price Index, scheduled for Wednesday, August 12. The June CPI dropped 0.4% from the previous month but was still 3.5% higher compared to the same period last year. Energy prices increased 15.7% over the year, while food prices rose 3%. The July CPI will serve as the latest official measure of consumer inflation, guiding market expectations on U.S. price pressures and interest rate trends.
The Producer Price Index for July will be published on Thursday, August 13. In June, producer prices for final demand declined 0.3%. Gold had already pushed higher on Monday, gaining 0.8% to $4,376.56 an ounce. The upward momentum continued on Tuesday, with spot gold surpassing $4,400 and reaching its strongest level in over two months. This three-day rally followed an early Monday dip that briefly pulled gold away from its earlier seven-week high.
Silver and platinum join the upward movement
Other precious metals also posted gains on Tuesday. Spot silver increased 0.9% to $66.30 an ounce, while platinum advanced 0.7% to $1,765.26. Palladium rose 0.8% to $1,394.00. The broader positive trend emerged as financial and commodity markets monitored the same U.S. inflation calendar that is shaping gold’s recent performance. Gold remained the main focus after breaking above Monday’s levels and extending its gains that started following Friday’s employment report.
This latest rise in gold marks a notable shift from the early part of Monday’s session, when prices initially declined from a seven-week peak. However, bullion reversed that decline later in the day and closed higher, with gains extending into Tuesday. Despite this, spot prices are still below the record levels seen in January 2026, when gold traded above $5,500 an ounce. The upcoming U.S. consumer and producer inflation reports are now the key economic indicators to watch for market direction.