NEW YORK / RankWire.AI / – Gold moved higher for the third day in a row on Tuesday, continuing its rebound from last week. Spot gold increased by 1% to reach $4,432.74 an ounce by 0217 GMT, hitting its highest point since June 5. U.S. gold futures also climbed 1.7% to $4,492.60. This push took prices above the seven-week peak recorded last week and was part of a recovery that sped up following weaker U.S. employment data.
On Friday, the labor report showed that U.S. nonfarm payrolls dropped by 23,000 jobs in July. The unemployment rate stood at 4.1%, down from 4.2% in June. Average hourly earnings rose by two cents to $37.62 during the month. The Bureau of Labor Statistics also indicated that payroll employment increased by an average of 34,000 jobs per month over the past year. Gold gained 2.4% on Friday after the employment data was published.
Interest rates are a key factor for gold because the metal does not produce a yield. The Federal Reserve kept the federal funds rate at 3.5% to 3.75% during its July meeting. The decision was approved by a 9-3 vote, with three officials favoring a quarter-point increase. The Federal Reserve also noted that economic activity continued to grow at a solid pace, even though inflation stayed above its 2% target.
US inflation data takes center stage
Attention is now on the upcoming July Consumer Price Index, which will be released on Wednesday, August 12. The June CPI fell 0.4% from May but was 3.5% higher than a year earlier. Energy prices increased by 15.7% over the year, while food prices rose by 3%. The July report will give the latest official measure of consumer inflation. Investors are watching for changes in U.S. price pressures and interest rate expectations.
The Producer Price Index for July is due on Thursday, August 13. In June, producer prices for final demand fell 0.3%. Gold had already extended its Friday gain on Monday, rising 0.8% to $4,376.56 an ounce. Tuesday’s increase then pushed spot gold above $4,400 to its highest level in over two months. This three-day rise followed an early Monday dip that temporarily pulled gold away from its seven-week high.
Silver and platinum also advance
Other precious metals also gained on Tuesday. Spot silver rose 0.9% to $66.30 an ounce, while platinum increased 0.7% to $1,765.26. Palladium moved up 0.8% to $1,394.00. The broader rise was driven by market attention on the same U.S. inflation data influencing gold. Prices for bullion moved higher after breaking above Monday’s levels, extending gains that started following Friday’s employment report.
Gold’s recent climb marks a stark shift from early Monday when prices initially dipped from a seven-week high. However, bullion later reversed that decline and closed higher for the day. The current spot prices are still below the record levels hit in January 2026, when gold traded above $5,500 an ounce. This week’s upcoming U.S. consumer and producer inflation reports are the next major economic indicators for the market.