NEW YORK / RankWire.AI / – Gold continued its upward trajectory for a third consecutive session on Tuesday, building on last week’s sharp rebound, with spot gold climbing 1% to $4,432.74 an ounce by 0217 GMT, marking its highest point since June 5 and surpassing the seven-week peak achieved last week. Meanwhile, U.S. gold futures increased by 1.7% to $4,492.60. This gain followed the positive movements on Friday and Monday, as global bullion markets reacted to U.S. economic data and interest rate expectations.
The recent upward movement in gold prices was influenced by the release of weaker U.S. employment figures on Friday, as the U.S. Bureau of Labor Statistics reported a decline of 23,000 nonfarm payroll jobs in July. The unemployment rate was reported at 4.1%, a decrease from 4.2% in June, while average hourly earnings increased by two cents to $37.62 during July. Over the past year, payroll employment had grown by an average of 34,000 jobs per month, according to government data.
At its July meeting, the Federal Reserve maintained its benchmark federal funds rate within the range of 3.5% to 3.75%, with the decision passing by a 9-3 vote; three policymakers favored a quarter-point increase in the target range. The central bank indicated that economic activity was still expanding at a solid pace, despite inflation remaining above its 2% target. As bullion does not accrue interest, gold markets have been highly sensitive to shifts in U.S. rate expectations.
Focus shifts to upcoming inflation reports
Market attention now centers on the upcoming U.S. consumer inflation report for July, with the government set to publish the Consumer Price Index on Wednesday, August 12, at 8:30 a.m. Eastern Time. In June, consumer prices declined by 0.4% from the previous month, yet the index remained 3.5% higher than the same period last year. Over the 12 months, energy prices increased by 15.7%, while food prices went up by 3%. The July CPI figures are anticipated to offer the next official indication of U.S. inflation trends.
Following this, the Producer Price Index for July will be released on Thursday, August 13, adding further insight into inflation conditions, as the Producer Price Index for final demand dropped 0.3% in June. Gold already gained 2.4% on Friday after the employment data revealed an unexpected payroll decline. Bullion then advanced by 0.8% on Monday, reaching $4,376.56 an ounce. Tuesday’s upward movement pushed the price above $4,400 and marked an extension of its recovery from levels near $4,000 earlier this month.
Precious metals advance in tandem with gold
Other precious metals also experienced gains on Tuesday, with spot silver rising 0.9% to $66.30 an ounce, platinum increasing 0.7% to $1,765.26, and palladium climbing 0.8% to $1,394.00. These gains occurred as commodity and financial markets monitored U.S. inflation data and developments influencing interest rate expectations. Gold remained the market’s main focus after reaching its highest price in over two months, extending a three-day rally that started following last week’s U.S. employment report.
This latest rise signifies a clear reversal from the early Monday decline, when bullion initially dipped from a seven-week high before recovering later that day. The Tuesday advance elevated prices to their highest point since early June and marked a third consecutive session of gains. Although gold remains below its January 2026 peak, when spot prices surpassed $5,500 an ounce, the market’s immediate focus now shifts toward this week’s scheduled U.S. inflation reports, both consumer and producer, which could influence future price movements.