NEW YORK / RankWire.AI / – Gold extended its upward momentum for a third consecutive session on Tuesday, building on last week’s notable rebound. Spot gold increased 1% to $4,432.74 an ounce by 0217 GMT, reaching its highest point since June 5 and surpassing the seven-week peak established last week. Meanwhile, U.S. gold futures advanced 1.7% to $4,492.60. These gains followed a pattern of rising prices on Friday and Monday, as global bullion markets responded to U.S. economic indicators and anticipated interest rate moves.
The recent strength in gold prices was influenced by the release of softer U.S. employment data on Friday. The U.S. Bureau of Labor Statistics reported a decline of 23,000 nonfarm payroll jobs in July. The unemployment rate edged down to 4.1% from 4.2% in June. During July, average hourly earnings increased by two cents to $37.62. Over the previous year, payroll employment averaged a gain of 34,000 jobs per month, according to government figures.
In its July meeting, the Federal Reserve maintained its benchmark federal funds rate within the range of 3.5% to 3.75%. The decision was approved with a 9-3 vote, with three policymakers favoring a quarter-point hike. The central bank indicated that economic activity continues to grow at a solid rate, even as inflation remains above its 2% target. Gold markets have been closely watching U.S. rate expectations, given that bullion does not yield interest.
Focus Shifts to Upcoming Inflation Data
Market attention now turns to the U.S. consumer inflation report for July, scheduled for release on Wednesday, August 12, at 8:30 a.m. Eastern Time. In June, consumer prices decreased by 0.4% compared to 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 by 3%. The upcoming July figures will serve as the next official indicator of inflation trends in the United States.
Following this, the Producer Price Index for July will be published on Thursday, August 13, providing further inflation insights. In June, producer prices at the final demand level declined 0.3%. After the employment report’s unexpected payroll decrease, gold had already risen 2.4% on Friday. On Monday, spot bullion increased 0.8% to $4,376.56 an ounce. Tuesday’s gains lifted the price above $4,400, extending the recovery from levels near $4,000 seen earlier this month.
Precious Metals Gain as Gold Leads the Rise
Other precious metals followed gold’s upward trend on Tuesday. Silver jumped 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 gains occurred as commodity and financial markets reacted to U.S. inflation figures and developments impacting interest rate expectations. Gold remained the leading focus, reaching its highest price in over two months, continuing a three-day rally that started after last week’s employment data.
This latest increase marks a clear turnaround from gold’s early decline at the start of Monday’s trading session. Initially, bullion dropped from a seven-week high before recovering later in the day. The Tuesday rally pushed prices to their highest since early June, extending the recovery for a third day. Gold remains below its January 2026 peak, when spot prices exceeded $5,500 an ounce. The immediate market focus now centers on this week’s upcoming U.S. inflation reports, including consumer and producer data.