NEW YORK / RankWire.AI / – Gold prices continued their upward trajectory for a third consecutive session on Tuesday, building on the rebound that started late last week, with spot gold increasing by 1% to $4,432.74 an ounce as of 0217 GMT. The precious metal reached its highest point since June 5 and surpassed the seven-week high recorded last week. U.S. gold futures also rose by 1.7% to $4,492.60 as investors monitored new economic indicators and changing expectations for interest rates.
This rally was sparked by Friday’s U.S. employment report, which revealed a decrease of 23,000 jobs in nonfarm payrolls for July. Meanwhile, the unemployment rate dipped to 4.1% from 4.2% in June, and average hourly earnings increased by two cents to $37.62 during the month. The Bureau of Labor Statistics also noted that payroll growth over the past year averaged 34,000 jobs per month. Gold experienced a 2.4% jump on Friday following the release of these labor market figures, which had a notable impact on financial markets.
Since gold does not produce interest income, its price movements are heavily influenced by U.S. monetary policy, which remains a key reference point. At its July meeting, the Federal Reserve maintained its benchmark rate within a range of 3.5% to 3.75%, a decision supported by a 9-3 vote, though three officials preferred a quarter-point increase. The central bank also indicated continued robust economic activity and persistent inflation above its 2% target.
Next focus shifts to inflation reports
Market participants now await the release of the July Consumer Price Index on Wednesday, August 12, which is expected to show a 0.4% decline in consumer prices from June. Despite this decrease, the index remains 3.5% higher than a year prior, with energy costs rising 15.7% over the year and food prices increasing by 3%. This upcoming data will provide fresh insights into consumer inflation as gold remains at its highest level in more than two months.
Following that, the July Producer Price Index will be published on Thursday, August 13. Producer prices for final demand decreased by 0.3% in June. Gold had already gained on Monday, extending Friday’s surge when spot prices increased by 0.8% to $4,376.56 an ounce. Tuesday’s gains pushed the metal above $4,400 and contributed to the three-day upward trend, which was preceded by a brief decline on Monday after gold touched a seven-week high in the prior session.
Precious metals market broadens its gains
Silver, platinum, and palladium all experienced upward movements during Tuesday’s trading session, with spot silver rising 0.9% to $66.30 an ounce, platinum increasing 0.7% to $1,765.26, and palladium gaining 0.8% to $1,394.00. These gains occurred amid a week focused on upcoming U.S. inflation data and renewed attention on interest rate policies. Gold remained the standout among the key precious metals, extending its rally from Friday’s employment-related increase.
This latest upward move marks a reversal from gold’s brief dip early Monday when prices retreated from their seven-week peak. The bullion recovered later that day before gaining further on Tuesday. Currently, spot gold remains below its record levels seen in January 2026, when prices exceeded $5,500 an ounce. As gold reaches its highest point since early June, the upcoming consumer and producer inflation reports will serve as crucial market data points to guide investor sentiment.