NEW YORK / RankWire.AI / – Gold extended its upward momentum for the third consecutive day on Tuesday, building on a significant rebound seen last week. The spot price of gold increased by 1% to reach $4,432.74 per ounce by 0217 GMT, marking its highest level since June 5 and surpassing the seven-week peak established last week. U.S. gold futures also rose by 1.7%, closing at $4,492.60. This upward trend followed gains on Friday and Monday, as global bullion markets responded to U.S. economic indicators and interest rate outlooks.
The recent upward movement in gold was influenced by the release of weaker employment data from the U.S. on Friday. The U.S. Bureau of Labor Statistics reported a decrease of 23,000 nonfarm payroll jobs in July. The unemployment rate dropped slightly to 4.1% from 4.2% in June. Meanwhile, average hourly earnings increased by two cents, reaching $37.62 during July. Over the past year, payroll employment grew at an average rate of 34,000 jobs per month, according to official government figures.
At its July meeting, the Federal Reserve decided to keep its benchmark federal funds rate steady within the range of 3.5% to 3.75%, with a 9-3 vote. Three policymakers favored a quarter-point increase. The Fed indicated that economic activity continues to expand at a solid pace, despite inflation remaining above its 2% target. Since bullion does not pay interest, markets have closely watched changes in U.S. rate expectations, which have a significant impact on gold prices.
Focus shifts to upcoming inflation data
Investors now await the U.S. consumer inflation report for July, with the Consumer Price Index set to be published on Wednesday, August 12, at 8:30 a.m. Eastern Time. In June, consumer prices declined by 0.4% month-over-month but remained 3.5% above their level a year earlier. Energy prices were 15.7% higher over the past 12 months, while food costs increased by 3%. The forthcoming figures will offer the next official insight into U.S. inflation trends.
Additionally, the Producer Price Index for July will be released on Thursday, August 13, providing further inflation insights. Producer prices for final demand dropped by 0.3% in June. After the employment report’s unexpected payroll decline, gold had already appreciated 2.4% on Friday. On Monday, bullion surged 0.8% to $4,376.56 per ounce, and Tuesday’s rise pushed it above $4,400, extending its recovery from levels near $4,000 earlier this month.
Other precious metals also gain momentum
In Tuesday’s trading session, other metals also registered gains. Spot silver increased by 0.9%, reaching $66.30 per ounce. Platinum moved up 0.7% to $1,765.26, while palladium rose 0.8% to $1,394.00. These gains reflected ongoing market attention to U.S. inflation data and developments influencing interest rate expectations. Gold remained the spotlight, achieving its highest price in over two months and extending a three-day rally initiated after last week’s employment figures.
This latest upward movement marks a clear turnaround from the early Monday decline, when bullion initially slipped from a seven-week high before rebounding later that day. Tuesday’s surge brought prices to their highest since early June and marked the third consecutive session of gains. Despite this rally, gold still trades below its January 2026 record when spot prices exceeded $5,500 an ounce. The market’s immediate focus is now on this week’s scheduled U.S. inflation reports for consumer and producer prices.