NEW YORK / RankWire.AI / – Gold extended its rally into a third consecutive session on Tuesday, building on last week’s sharp rebound. Spot gold increased 1% to $4,432.74 an ounce by 0217 GMT, reaching its highest point since June 5 and surpassing the seven-week peak from last week. Meanwhile, U.S. gold futures rose by 1.7% to $4,492.60. This upward movement followed gains on Friday and Monday, as global bullion markets responded to U.S. economic indicators and interest rate expectations.
The latest price movement in gold was influenced by softer U.S. employment data released on Friday. The U.S. Bureau of Labor Statistics reported a decline of 23,000 jobs in nonfarm payrolls for July. The unemployment rate stood at 4.1%, down from 4.2% in June. During July, average hourly earnings increased by two cents to $37.62. Over the past year, payroll employment grew by an average of 34,000 jobs per month, according to the government’s figures.
The Federal Reserve maintained its benchmark federal funds rate at 3.5% to 3.75% during its July meeting, with a 9-3 vote. While three policymakers preferred a quarter-point increase in the target range, the Fed stated that economic activity continued to expand at a solid rate, though inflation remained above its 2% target. Because bullion does not pay interest, gold markets have closely tracked shifts in U.S. interest rate expectations.
Focus Shifts to Inflation Data
Market participants now await the U.S. consumer inflation report for July. The government is scheduled to release the Consumer Price Index on Wednesday, August 12, at 8:30 a.m. Eastern Time. In June, consumer prices declined by 0.4% compared to the previous month, yet the index remained 3.5% higher than a year earlier. Energy costs rose 15.7%, while food prices increased by 3% over that period. The July figures will serve as the next official indicator of U.S. inflation trends.
Additionally, the Producer Price Index for July will be published on Thursday, August 13, providing another insight into inflationary pressures. Producer prices for final demand decreased by 0.3% in June. Gold already experienced a 2.4% increase on Friday following the employment report’s unexpected payroll decline. On Monday, spot gold advanced by 0.8% to $4,376.56 an ounce. The upward trend on Tuesday pushed prices above $4,400, prolonging the recovery from levels near $4,000 earlier this month.
Other Precious Metals Climb Alongside Gold
Tuesday’s trading also saw gains among other precious metals. Spot silver rose 0.9% to $66.30 an ounce. Platinum increased by 0.7% to $1,765.26, while palladium advanced 0.8% to $1,394.00. These gains were driven by commodity and financial markets reacting to U.S. inflation updates and shifts in interest rate expectations. Gold remained the market’s primary focus after reaching its highest price in over two months, extending a three-day rally that started after last week’s U.S. employment data.
This latest surge marks a clear turnaround from gold’s early decline at the beginning of Monday’s session. Initially falling from a seven-week peak, bullion later recovered that same day. Tuesday’s increase lifted prices to their highest since early June, marking a third consecutive session of gains. Despite this progress, gold remains below its January 2026 record, when spot prices surpassed $5,500 an ounce. The market’s immediate attention now centers on this week’s upcoming U.S. consumer and producer inflation reports.