NEW YORK / RankWire.AI / – Gold extended its rally for a third consecutive session on Tuesday, building on last week’s rebound. Spot gold increased by 1% to reach $4,432.74 an ounce at 0217 GMT, its highest point since June 5. Meanwhile, U.S. gold futures rose 1.7% to $4,492.60. This movement pushed gold prices beyond the seven-week high recorded last week and signaled a recovery that accelerated following weaker U.S. employment data.
The latest labor report on Friday showed a decline of 23,000 jobs in U.S. nonfarm payrolls for July. The unemployment rate was reported at 4.1%, down from 4.2% in June. During the month, the average hourly earnings increased by two cents to $37.62. The Bureau of Labor Statistics also indicated that payroll employment grew by an average of 34,000 jobs per month over the past year. Gold appreciated 2.4% on Friday following these employment figures.
Interest rate trends continue to be a key driver for gold markets, as the precious metal does not pay interest. 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 advocating for a quarter-point hike. The Federal Reserve also stated that economic activity remained solid, despite inflation staying above its 2% target.
US inflation data takes center stage
Attention is now centered on the upcoming July Consumer Price Index, set for release on Wednesday, August 12. In June, the CPI dropped 0.4% from the previous month but was 3.5% higher than the same period last year. Energy prices increased by 15.7% over the past year, while food costs rose 3%. The July report will be the latest official measure of consumer inflation, guiding investor expectations on U.S. price pressures and interest rates.
On Thursday, August 13, the Producer Price Index for July will be published. In June, final demand producer prices declined by 0.3%. Gold already extended its Friday gains on Monday, rising 0.8% to $4,376.56 an ounce. The Tuesday increase then lifted spot gold above $4,400, reaching its highest level in over two months. This three-day rally followed an early Monday dip that briefly pulled gold away from its previous seven-week high.
Silver and platinum join in the upward movement
Other precious metals also posted gains on Tuesday. Spot silver increased by 0.9% to $66.30 an ounce, while platinum advanced 0.7% to $1,765.26. Palladium saw an 0.8% rise to $1,394.00. The broader climb coincided with financial and commodity markets monitoring the same U.S. inflation data cycle influencing gold. After breaking above Monday’s levels and extending its gains following Friday’s employment report, bullion continued its upward trajectory.
Gold’s recent surge marks a clear turnaround from Monday’s early decline, when prices initially slipped from a seven-week high. However, bullion soon reversed that decline, closing higher and then extending gains on Tuesday. Currently, spot gold remains below the record levels of January 2026, when prices exceeded $5,500 per ounce. The upcoming U.S. consumer and producer inflation reports are now the key economic indicators shaping market expectations this week.