NEW YORK / RankWire.AI / – Gold prices continued their upward momentum for a third consecutive session on Tuesday, building on a recovery that started late last week. The spot price of gold increased by 1% to reach $4,432.74 an ounce by 0217 GMT. This marked the highest level since June 5 and surpassed the seven-week peak recorded last week. Meanwhile, U.S. gold futures rose by 1.7% to $4,492.60 as investors monitored new economic indicators and changing interest rate expectations.
The rally was fueled by Friday’s U.S. employment report, which revealed a decline of 23,000 jobs in nonfarm payrolls for July. The unemployment rate declined to 4.1% from 4.2% in June. During the same period, average hourly earnings increased by two cents to $37.62. The Bureau of Labor Statistics also indicated that payroll expansion averaged 34,000 jobs per month over the past year. Following the labor data, gold prices climbed 2.4% on Friday, reflecting market reactions to the figures.
The stance of U.S. monetary policy remains a key influence on gold, as it does not yield interest income. The Federal Reserve maintained its benchmark rate within the 3.5% to 3.75% range at its July meeting, with a 9-3 vote in favor of the decision. Three officials preferred a quarter-point increase instead. The Federal Reserve also reported ongoing robust economic activity, despite inflation remaining above its 2% target.
Focus shifts to upcoming inflation reports
Investors are now awaiting the release of the July Consumer Price Index, scheduled for Wednesday, August 12. In June, consumer prices decreased by 0.4% from the previous month, with the index still 3.5% higher than a year earlier. Over the 12-month period, energy prices surged by 15.7%, and food prices increased by 3%. The upcoming July data will provide an updated perspective on consumer inflation, with gold trading at its most robust level in over two months.
The Producer Price Index for July will be published on Thursday, August 13. In June, producer prices for final demand fell by 0.3%. On Monday, gold extended its rally from Friday when spot prices rose 0.8% to $4,376.56 an ounce. Tuesday’s upward move pushed the price above $4,400, contributing to a three-session climb. This came after an initial decline on Monday, when gold briefly dipped following its previous seven-week high in the prior session.
Gains in other precious metals
Tuesday’s trading saw silver, platinum, and palladium all rising. Spot silver increased by 0.9% to $66.30 an ounce. Platinum advanced 0.7% to $1,765.26, while palladium grew by 0.8% to $1,394.00. These gains occurred amid a week characterized by scheduled U.S. inflation data releases and renewed focus on interest rates. Gold maintained its leading position among major precious metals, continuing its upward trend from Friday’s employment-driven increase.
The recent advance signals a reversal from gold’s brief decline early Monday, when prices slipped from their recent seven-week peak. Prices recovered later in that session before gaining further on Tuesday. Currently, spot gold remains below the record levels seen in January 2026, when prices exceeded $5,500 an ounce. With gold reaching its highest level since early June, upcoming consumer and producer inflation reports are expected to serve as crucial data points for market direction.