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Cotton is grown in about 90 countries and accounts for 24% of the fibers used in the global production of textiles. In 2018/2019, 25.8 Mt of cotton were produced around the world. Since this natural product consists mainly of cellulose, it can be used as a raw material in the so-called “sugar economy”. This paper discusses a model procedure for thermally assisted acidic hydrolysis of cotton into glucose and subsequent oxidation of the glucose into calcium gluconate over Pd-Au/SiO2 catalyst. In the first step, H2SO4 was used as a catalyst for hydrolysis. The cotton hydrolysates were neutralized using CaCO3 and applied as a substrate in the second step, where glucose was oxidized over Pd-Au/SiO2 prepared by ultrasound assisted co-impregnation. With the appropriate Au/Pd molar ratio, small crystallites of palladium and gold were created which were active and selective towards the formation of gluconate ions. This approach to the transformation of glucose represents as a viable alternative to biological processes using fungal and bacterial species, which are sensitive to the presence of inhibitors such as furfurals and levulinic acid in hydrolysates.