Gold prices rose in European markets on Monday, extending gains for the fourth consecutive day and reaching a three-week high, as safe-haven buying intensified amid fears of an escalating global trade war following Trump’s threat to impose tariffs on the European Union and Mexico.

Gains in the precious metal were capped by the strength of the U.S. dollar in the foreign exchange market, as investors await key U.S. inflation data this week, which will offer strong clues about the likelihood of interest rate cuts in the second half of the year.

The Price

• Gold prices today: Gold rose by more than 0.55% to $3,375.01, up from the opening level of $3,355.72, after touching a session low of $3,353.84.

• On Friday, gold prices settled with a 0.95% increase, marking a third straight daily gain, driven by Trump’s tariff announcements.

• Over the past week, gold rose by 0.55%, its second consecutive weekly gain.

Trump’s Trade Threats

On Saturday, U.S. President Donald Trump announced new tariff measures in separate letters addressed to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum, both published on his "Truth" social media platform.

Trump threatened to impose 30% tariffs on the EU and Mexico — two of the U.S.'s largest trading partners — starting August 1.

Both the EU and Mexico described the tariffs as unfair and disruptive. The EU said it would extend its suspension of retaliatory measures on U.S. tariffs until early August and would continue pressing for a negotiated settlement.

U.S. Dollar

The U.S. dollar index rose by 0.25% on Monday, extending gains for the third consecutive session and hitting a three-week high of 98.10 points, reflecting continued dollar strength against a basket of major and minor currencies.

Carol Kong, currency strategist at Commonwealth Bank of Australia, commented that financial markets appear increasingly indifferent to President Trump’s tariff threats, which have become a repeated theme in recent months.

Separately, Trump stated on Sunday that it would be “great” if Federal Reserve Chair Jerome Powell resigned, once again threatening central bank independence as he called for rate cuts.

U.S. Interest Rates

• According to the CME Group’s FedWatch tool, markets currently price in a 7% chance of a 25 basis-point rate cut at the July meeting, with a 93% chance of no change.

• For September, odds of a 25 basis-point cut are steady at 61%, with the probability of no change at 39%.

• Investors are closely watching this week’s release of U.S. consumer and producer price data for June to reassess these expectations.

Gold Outlook

• Kelvin Wong, market analyst for the Asia-Pacific region at OANDA, said: “We’re seeing a resurgence in safe-haven demand amid uncertainty over the implementation of U.S. global trade tariff policy.”

• Wong added that the short-term outlook for gold appears positive, and if gold closes above $3,360, it could rise toward the next resistance level at $3,435.

SPDR Fund

Holdings in the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell by approximately 1.17 metric tons on Friday, bringing the total to 947.64 metric tons.

The euro fell in European markets on Monday against a basket of major global currencies, deepening its losses for the fourth consecutive day against the U.S. dollar and recording its lowest level in three weeks. The decline comes amid threats from Donald Trump to impose tariffs of around 30% on European products starting this August.

The European Union rejected Trump’s trade threats and decided to extend its suspension of retaliatory tariffs on U.S. products until August 1, while continuing to push for a negotiated resolution.

With growing uncertainty surrounding the possibility of a European interest rate cut at this month’s European Central Bank meeting — especially after June’s key inflation data — investors are awaiting further important economic indicators from the eurozone.

The Price

• Euro exchange rate today: The euro fell against the dollar by 0.3% to $1.1654 — its lowest level since June 26 — down from Friday’s closing price of $1.1688. The euro reached a session high of $1.1698.

• On Friday, the euro ended the session down 0.1% against the dollar, marking its third straight daily loss amid Trump’s trade pressure on the EU.

• Last week, the euro lost 0.7%, its first weekly loss in three weeks, as part of a correction and profit-taking move from a four-year high of $1.1830.

Trump's Trade Threats

On Saturday, U.S. President Donald Trump announced his latest tariff measures in two separate letters to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum, both posted on his social media platform “Truth.”

Trump threatened to impose 30% tariffs on the European Union and Mexico — two of the U.S.'s largest trading partners — starting August 1.

In a swift response, the European Union said it would extend its suspension of countermeasures on U.S. tariffs until early August and continue pressing for a negotiated settlement.

U.S. Dollar

The dollar index rose on Monday by 0.25%, extending gains for the third straight session and hitting a three-week high of 98.10 points, reflecting continued strength in the U.S. currency against both major and minor currencies.

Carol Kong, a currency strategist at Commonwealth Bank of Australia, said: “Financial markets seem increasingly indifferent to President Trump’s tariff threats now, after these warnings have been repeated several times in recent months.”

Beyond tariff headlines, Trump stated on Sunday that it would be “great” if Federal Reserve Chair Jerome Powell resigned, once again threatening the central bank’s independence as he called for interest rate cuts.

European Interest Rates

• According to Reuters sources, a clear majority at the last European Central Bank meeting favored keeping interest rates unchanged in July, with some calling for a longer pause.

• Money markets currently price in a roughly 30% chance that the ECB will cut rates by 25 basis points in July.

• To reassess those expectations, investors are closely watching upcoming economic data from Europe as well as comments from ECB policymakers.

Ripple's price rose on Friday amid strong demand for cryptocurrencies and as Bitcoin reached new record highs.

U.S. President Donald Trump announced today a 35% tariff on Canada and threatened to raise tariffs on other countries as well.

In a post on Truth Social yesterday, Trump said the tariffs on Canada were a response to its failure to help stop the flow of fentanyl into the United States, warning that he would increase them further if Canada retaliates.

In an interview with NBC, Trump also said he intends to impose broad tariffs ranging from 15% to 20% on other countries — higher than the current 10% rate that investors have become accustomed to.

Brazilian President Luiz Inácio Lula da Silva said he is seeking a diplomatic solution to the tariff dispute with the United States but pledged to respond in kind if the tariffs are implemented on August 1.

Bitcoin

The world’s largest cryptocurrency surged past $118,000 for the first time in history, after trading below $80,000 as recently as April.

The broader crypto market also posted strong gains, with Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) each rising more than 7%.

This new record pushed Bitcoin’s market capitalization above $2.3 trillion, surpassing tech giants like Google (Alphabet) and Meta, and even overtaking silver, though it still remains a fraction of gold’s estimated $22 trillion market cap.

This extraordinary rally began after President Trump declared "Liberation Day" on April 2, disrupting traditional markets and pushing both retail and institutional investors toward alternative assets like Bitcoin as a hedge against major economic uncertainty.

Gadi Chait, Chief Investment Officer at Xapo Bank, told The Independent: “Bitcoin shattered all expectations, shifting from a calm trading range to a full sprint that culminated in a new record.”

He added, “Behind the scenes, institutions are frantically accumulating Bitcoin. What’s remarkable is that this institutional inflow has continued despite the extreme global economic uncertainty — a test that many so-called ‘volatile’ assets have failed.”

The latest surge has fueled strong bullish sentiment. A recent Finder survey of 22 experts showed an average year-end 2025 price prediction for Bitcoin of $145,167.

To reach that level, the price would need to rise another $27,000 in the second half of the year, after climbing roughly $25,000 in the first half.

Kadan Stadelmann, Chief Technology Officer at Komodo and one of the survey participants, said, “We still have at least six months left in this bull cycle. If historical trends hold, I expect the peak in Q1 2026, followed by a bear market.”

Ripple

As for trading, Ripple’s price jumped 13.9% to $2.84 at 20:58 GMT on CoinMarketCap. The cryptocurrency has surged 28.8% over the past seven days, pushing its market cap to approximately $168 billion, making it the third-largest crypto after Bitcoin and Ethereum.

The Canadian dollar fell against most major currencies on Friday following decisions that signaled an escalation in the trade war between the United States and Canada.

U.S. President Donald Trump announced today the imposition of a 35% tariff on Canadian imports and threatened to raise tariffs on other countries as well.

In a post on Truth Social yesterday, Trump said the tariffs on Canada were a response to its failure to cooperate in stopping the flow of fentanyl into the United States, warning that he would raise them further if Canada retaliated.

Government data released today showed that the Canadian economy added 83.1 thousand jobs in June, far exceeding analysts’ expectations of only 0.9 thousand. The unemployment rate fell to 6.9% last month from 7.0% in May, while analysts had expected it to rise to 7.1%.

In trading, the Canadian dollar declined against its U.S. counterpart by 0.2% to 0.7308 at 20:53 GMT.

Australian Dollar

The Australian dollar also dropped against the U.S. dollar by 0.2% to 0.6577 at 20:53 GMT.

U.S. Dollar

The U.S. dollar index rose by 0.2% to 97.8 points at 20:29 GMT, after hitting a high of 97.9 and a low of 97.5.

In an interview with NBC, Trump said he intends to impose broad-based tariffs ranging between 15% and 20% on other countries — a rate higher than the current 10% level investors have become accustomed to in recent months.

Brazilian President Luiz Inácio Lula da Silva said he is seeking a diplomatic resolution to the tariff dispute with the United States but pledged to respond in kind if the tariffs are enacted on August 1.