NEW YORK / RankWire.AI / – Gold experienced a third consecutive increase on Tuesday, continuing its rebound from last week. The spot price of gold rose by 1% to reach $4,432.74 per ounce by 0217 GMT, hitting its highest point since June 5. U.S. gold futures climbed 1.7% to $4,492.60. This upward movement pushed prices above the seven-week high recorded last week and signaled a recovery that gained momentum after softer U.S. employment data was published.
The employment report released on Friday revealed that U.S. nonfarm payrolls declined by 23,000 jobs in July. The unemployment rate fell to 4.1%, down from 4.2% in June. Additionally, average hourly earnings increased by two cents to $37.62 during the month. The Bureau of Labor Statistics also indicated that payroll employment grew by an average of 34,000 jobs per month over the past year. Following the employment figures, gold prices rose by 2.4% on Friday.
Interest rates continue to play a crucial role in gold markets since the metal does not generate a yield. The Federal Reserve maintained the federal funds rate at 3.5% to 3.75% during its July meeting. The decision was approved with a 9-3 vote, with three officials preferring a quarter-point increase. The Federal Reserve also noted that economic activity persisted at a solid pace and inflation remained above its 2% target.
US inflation data takes center stage
Investors are now awaiting the July Consumer Price Index, due to be released on Wednesday, August 12. The June CPI declined by 0.4% from the previous month but was still 3.5% higher than the same period last year. Energy prices increased by 15.7% over the year, while food prices rose 3%. The upcoming July report will serve as the latest official indicator of consumer inflation, with traders closely watching for shifts in US price pressures and interest rate expectations.
The Producer Price Index for July is scheduled for release on Thursday, August 13. Producer prices for final demand fell by 0.3% in June. Gold had already advanced 0.8% on Monday, reaching $4,376.56 an ounce, extending Friday’s gains. Tuesday’s increase then pushed spot gold above $4,400, marking its strongest level in over two months. This three-day rally followed an early Monday dip that briefly took gold away from its seven-week high.
Silver and platinum also gain alongside gold
Other precious metals experienced gains on Tuesday as well. Silver’s spot price increased by 0.9% to $66.30 an ounce, and platinum advanced 0.7% to $1,765.26. Palladium rose by 0.8%, reaching $1,394.00. The broader market rally coincided with the same US inflation data calendar that has been influencing gold. After breaking above Monday’s levels and extending the gains initiated after Friday’s employment report, bullion remained in focus.
The recent surge in gold prices marks a notable turnaround from the early hours of Monday’s trading, when prices initially declined from a seven-week high. Later, bullion reversed that downward trend, closing higher and continuing its upward momentum into Tuesday. Despite the recent gains, spot gold remains below the record levels of over $5,500 an ounce reached in January 2026. The upcoming US consumer and producer inflation reports are now set to be the next significant economic releases impacting the market.