NEW YORK / RankWire.AI / – Gold continued its upward trajectory for a third consecutive session on Tuesday, extending its recovery from last week’s lows. Spot gold increased by 1% to reach $4,432.74 an ounce by 0217 GMT, hitting its highest point since June 5. Meanwhile, U.S. gold futures jumped 1.7% to $4,492.60. This upward movement pushed prices beyond the seven-week peak established last week and signaled a rebound that gained momentum after weaker U.S. employment figures.
The labor report released on Friday indicated a decrease of 23,000 jobs in the U.S. nonfarm payrolls for July. The unemployment rate dropped to 4.1% from 4.2% in June. Additionally, average hourly earnings rose by two cents to $37.62 over the month. The Bureau of Labor Statistics also disclosed that payroll employment averaged an increase of 34,000 jobs per month throughout the past year. Following the employment data, gold experienced a 2.4% rise on Friday.
Interest rate levels continue to be a critical factor influencing gold markets because the metal does not generate yields. The Federal Reserve maintained the federal funds rate within the range of 3.5% to 3.75% during its July meeting. The decision was approved with a 9-3 vote, with three officials favoring a quarter-point hike. The Federal Reserve further stated that economic activity persisted in expanding at a healthy rate, although inflation remained above its 2% target.
U.S. inflation data in the spotlight
Attention now shifts to the upcoming July Consumer Price Index, set for release on Wednesday, August 12. In June, the CPI declined by 0.4% month-over-month but was still 3.5% higher than the previous year. Energy prices rose by 15.7% over the past twelve months, while food prices increased by 3%. The July report will serve as the latest official indicator of consumer inflation, with investors closely watching for shifts in U.S. price pressures and interest rate expectations.
The Producer Price Index for July is scheduled for release on Thursday, August 13. In June, final demand producer prices fell 0.3%. Gold had already extended its gains from Friday on Monday, climbing 0.8% to $4,376.56 an ounce. Tuesday’s rally propelled spot gold above $4,400, reaching its highest level in more than two months. This three-session upward movement followed an early Monday decline that briefly pulled gold away from its earlier seven-week high.
Silver and platinum follow suit in upward trend
Other precious metals also gained on Tuesday. Spot silver increased by 0.9% to $66.30 an ounce, while platinum appreciated 0.7% to $1,765.26. Palladium saw an 0.8% rise to $1,394.00. The broader rally came as financial and commodity markets kept an eye on the same U.S. inflation calendar influencing gold’s movement. After breaking above Monday’s levels and building on Friday’s employment report gains, bullion remained the market’s main focus.
The recent upward move in gold contrasts sharply with Monday’s early decline, when prices initially fell from a seven-week peak. The market later reversed course, closing higher before extending gains on Tuesday. Despite this rally, spot gold remains below the record levels of January 2026 when prices traded above $5,500 an ounce. The upcoming U.S. consumer and producer inflation reports are now the primary economic data points to watch for traders.