NEW YORK / RankWire.AI / – Gold advanced for a third consecutive session on Tuesday as bullion extended its rebound from last week. Spot gold gained 1% to $4,432.74 an ounce by 0217 GMT, reaching its highest level since June 5. U.S. gold futures climbed 1.7% to $4,492.60. This movement pushed prices above the seven-week peak recorded last week and continued a recovery that accelerated following weaker U.S. employment data.
The labor report released on Friday revealed that U.S. nonfarm payrolls declined by 23,000 jobs in July. The unemployment rate stood at 4.1%, down from 4.2% in June. Average hourly earnings increased by two cents to $37.62 during the month. Additionally, the Bureau of Labor Statistics reported that payroll employment had risen by an average of 34,000 jobs per month over the previous year. Following the employment figures, gold surged by 2.4% on Friday.
Interest rate considerations continue to dominate gold market dynamics because the metal does not pay a yield. The Federal Reserve maintained 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 hike. The Federal Reserve also indicated that economic activity persisted in expanding at a solid pace while inflation remained above its 2% target.
Focus Shifts to US Inflation Data
Attention is now centered on the upcoming July Consumer Price Index, which is scheduled for release on Wednesday, August 12. The June CPI decreased by 0.4% from the previous month but was still 3.5% higher than a year earlier. Over the 12-month period, energy prices rose 15.7%, while food costs increased by 3%. The July report will serve as the latest official gauge of consumer inflation, with investors closely watching for shifts in U.S. price pressures and interest rate expectations.
The Producer Price Index for July is slated for release on Thursday, August 13. Producer prices for final demand declined 0.3% in June. Gold had already extended its Friday gain on Monday, rising 0.8% to $4,376.56 an ounce. The gain on Tuesday then propelled spot bullion above $4,400, reaching its highest point in over two months. This three-day rally followed an early Monday dip that briefly pulled gold away from its earlier seven-week high.
Silver and platinum prices also climb
Other precious metals also experienced gains on Tuesday. Spot silver increased by 0.9% to $66.30 an ounce, and platinum rose 0.7% to $1,765.26. Palladium gained 0.8% to $1,394.00. This broader upward movement coincided with financial and commodity markets monitoring the same U.S. inflation calendar that is now shaping gold’s direction. Bullion maintained focus after surpassing Monday’s levels and extending gains initiated following Friday’s employment report.
The recent surge in gold prices marks a notable shift from the early part of Monday’s trading session, when prices initially dropped from a seven-week peak. However, bullion later reversed this decline and ended higher, with gains extending into Tuesday. Spot prices remain below the record levels seen in January 2026, when gold traded above $5,500 an ounce. The upcoming U.S. consumer and producer inflation reports are now the primary economic data points to watch for market direction this week.