NEW YORK / RankWire.AI / – Gold prices continued their upward momentum for a third consecutive session on Tuesday, building on a rally that started late last week. The spot price of gold increased by 1% to reach $4,432.74 per ounce by 0217 GMT, marking its highest point since June 5 and surpassing the seven-week high established last week. Meanwhile, U.S. gold futures climbed 1.7% to $4,492.60 as traders analyzed new economic indicators and expectations surrounding interest rate adjustments.
The positive trend was influenced by Friday’s U.S. employment report, which indicated a drop of 23,000 jobs in nonfarm payrolls for July. The unemployment rate decreased slightly from 4.2% in June to 4.1%. Additionally, average hourly earnings increased by two cents to $37.62 during the same month. The Bureau of Labor Statistics also revealed that the average monthly payroll growth over the past year was 34,000 jobs. Gold prices gained 2.4% on Friday following the release of these labor market figures, fueling market optimism.
U.S. monetary policy remains a crucial reference point for gold, given that the precious metal does not generate interest income. The Federal Reserve maintained its benchmark interest rate in a range of 3.5% to 3.75% during its July meeting, with the decision passing by a 9-3 vote. Three officials expressed support for a quarter-point rate hike instead. The Fed also reported ongoing solid economic activity, even as inflation remained above its 2% target, influencing expectations for future policy moves.
Focus shifts to upcoming inflation reports
Market participants are now gearing up for the release of the July Consumer Price Index, scheduled for Wednesday, August 12. In June, consumer prices decreased by 0.4% compared to the previous month and remained 3.5% higher than the same period last year. Energy prices saw a significant increase of 15.7% over the year, while food costs rose by 3%. The July CPI data will offer fresh insights into consumer inflation trends, as gold trades at its highest level in over two months.
On Thursday, August 13, the July Producer Price Index will be published. Producer prices for final demand decreased by 0.3% in June. Following Friday’s gains, spot gold continued its rise on Monday, climbing 0.8% to $4,376.56 per ounce. The Tuesday advance pushed prices beyond the $4,400 mark and extended the rally to three sessions. Earlier in the week, gold had dipped briefly after reaching a seven-week high in the previous session, but recovered later in the day.
Precious metals markets also see gains
In addition to gold, silver, platinum, and palladium also experienced upward movement during Tuesday’s trading session. Spot silver increased by 0.9% to $66.30 an ounce. Platinum moved up 0.7% to $1,765.26, while palladium gained 0.8% to $1,394.00. These gains occurred amidst a week dominated by scheduled U.S. inflation reports and renewed focus on interest rate prospects. Gold continued to lead among the major precious metals after its rise was driven by Friday’s employment data, maintaining its upward trajectory.
This latest climb marks a reversal from gold’s brief decline early Monday, when prices dipped from their earlier seven-week high. The metal recovered later in that session and further extended gains on Tuesday. Although spot gold remains below the record levels seen in January 2026, when prices surpassed $5,500 an ounce, the recent rally has pushed it to its highest point since early June. The upcoming consumer and producer inflation reports will serve as key data points for traders and analysts moving forward, shaping market sentiment in the weeks ahead.