NEW YORK / RankWire.AI / – Gold prices extended their gains for a third consecutive session on Tuesday, continuing a rebound that started late last week. The spot gold price increased by 1% to $4,432.74 an ounce by 0217 GMT, reaching its highest level since June 5 and surpassing the seven-week high recorded last week. Meanwhile, U.S. gold futures climbed 1.7% to $4,492.60 as traders monitored new economic data and shifting expectations for interest rates.
This rally was triggered after Friday’s U.S. employment report, which revealed a decline of 23,000 nonfarm payrolls in July. The unemployment rate edged down from 4.2% in June to 4.1%. During the month, average hourly earnings increased by two cents to $37.62. The Bureau of Labor Statistics also indicated that payroll growth averaged 34,000 jobs per month over the past year. Gold experienced a 2.4% rise on Friday following the release of these labor market figures, which influenced financial markets.
As gold does not produce interest income, its value is heavily influenced by monetary policy cues from the U.S. Federal Reserve. The Federal Reserve maintained its benchmark interest rate within a range of 3.5% to 3.75% during its July meeting, with a 9-3 vote in favor of this decision. Three officials preferred a quarter-point increase instead. The Fed also reported ongoing robust economic activity while inflation remained above its 2% target.
Next focus shifts to inflation reports
Investors are now awaiting the July Consumer Price Index, due for release on Wednesday, August 12. June’s consumer prices declined by 0.4% from May, though they stayed 3.5% higher than a year earlier. Energy costs surged 15.7% over the 12 months, and food prices increased by 3%. The upcoming July data will provide fresh insights into consumer inflation, with gold trading at its highest point in over two months.
On Thursday, August 13, the July Producer Price Index will be released. Producer prices for final demand decreased by 0.3% in June. Gold had already gained momentum on Monday, extending Friday’s surge, with spot prices rising 0.8% to $4,376.56 an ounce. Tuesday’s advance took bullion above $4,400 and marked a three-session climb. This movement followed an initial dip on Monday, when gold briefly dipped after reaching a seven-week high in the previous session.
Precious metals markets also see broad gains
Tuesday’s trading saw increases across silver, platinum, and palladium. Spot silver advanced 0.9% to $66.30 an ounce. Platinum increased 0.7% to $1,765.26, while palladium rose 0.8% to $1,394.00. These gains came amid a week filled with scheduled U.S. inflation reports and renewed focus on interest rate policies. Gold continued to lead among the key precious metals, building on its Friday increase driven by employment data.
This latest rise marks a reversal from gold’s brief decline early Monday, when prices slipped from their seven-week peak. Bullion regained strength later in the session and further climbed on Tuesday. Currently, spot gold remains below the record levels seen in January 2026, when prices exceeded $5,500 an ounce. With gold at its highest since early June, the upcoming consumer and producer inflation reports are poised to serve as critical market indicators.