Gold prices rose in European market on Monday, extending gains for the second day in a row, but the rally remains limited as US dollar rose against a basket of global currencies ahead of the US Federal Reserve monetary policy meeting.

As of 10:40 GMT, gold prices rose by 0.2% to trade at $1,422.10 per ounce from the opening of $1,419.00, and recorded a high of $1,424.25 and a low of $1,417.44.

Gold prices rose 0.3% on Friday, the second gain in the last three days, recovering from a one-week low of $1,411.09 per ounce.

Over the past week, the price of the yellow metal lost 0.5%, the first weekly loss in the last three weeks, under the pressure of US dollar after positive data on the growth of the world's largest economy in the second quarter of this year.

The dollar index rose more than 0.2%, continuing its gains for the third day in a row, reaching a two-month high of 98.13 points, reflecting the continued strong rally of the US currency against most major and minor currencies, which negatively affects the prices of gold and other metals denominated in US dollars.

The rally came after better-than-expected US economic growth in the second quarter of this year, which lifted the 10-year US Treasury yields and boosted prospects of the Federal Reserve to cut interest rates by 25 basis points instead of 50 basis points during this meeting.

The Federal Reserve's FOMC begins its regular meeting on Tuesday to make its decisions on Wednesday, and it is widely expected to cut interest rates by a quarter percentage point to 2.25 percent. as investors are looking for a new evidence for the possibility of another rate cut before the end of this year.

Gold holdings at SPDR Gold Trust (The world's largest gold-backed index) fell Friday by 1.18 metric tons, the fourth consecutive daily decline, bringing the total to 818.14 metric tons.

European shares rose on Monday morning in the first session of the week, extending gains for the second consecutive session amid hopes of progress in the new round of US-China trade talks ahead of the US Federal Reserve meeting, which is expected to include the US interest rates cut by 25 basis points.

As of 11:35 GMT, Stoxx Europe 600 rose by 0.2%, as the index ended Friday's session up by 0.3%, thanks to a strong uptrend in the telecommunications sector led by Vodafone.

The index rose on Monday in the first session of the week, continuing its gains for the second session in a row, with most of Europe's major stock exchanges and sectors in the positive region.

Trade negotiators from the United States and China are set to meet Tuesday in Shanghai in the first round of talks since the truce agreement between US President Donald Trump and Chinese leader Xi Jinping in June on the sidelines of the G20 meeting in Japan.

White House economic adviser Larry Kudlow told CNBC television on Friday that the negotiators would start where the talks ended in May.

Investors hope that this round of talks will lead to progress on a comprehensive agreement that will end the trade disputes raging between the world's two largest economies for more than a year.

Investors are also waiting for the US Federal Reserve's monetary policy meeting this week as the US interest rates are widely expected to be cut by 25 basis points in a precautionary measure to protect the world's largest economy from global and local risks.

S&P 500 futures rose by 0.2%, and the index ended Friday's session on Wall Street, up by more than 0.7%, hitting a new record high of 3,027.98 points.

In Europe, the Euro Stoxx 50 index gained 0.2%, while in France, the CAC 40 index gained 0.1%.with Germany's DAX rising by 0.2%.

In London, the FTSE 100 added more than 1.6%, leading the list of gainers in Europe, as the pound fell to its lowest level in 28 months against the US dollar, boosting the gains of export-dependent firms.

Oil prices rose in the European market on Monday, extending gains for the third day in a row ahead of a new round of US-China trade talks that could lead to a significant progress on the way for the world's two largest economies to reach a comprehensive trade deal. while the gains are curbed due to the relative ease of geopolitical tensions in the Gulf, with signs of tensions with Iran easing.

By 09:25 GMT, US crude rose to $56.25 per barrel from the opening level of $56.16, after recording a high of $56.32 and a low of $55.93.

Brent crude rose to $63.43 per barrel from the opening of $63.33, after recording a high of $63.48 and a low of $62.96.

US crude was up by 0.4% on Friday, and Brent crude rose by 0.3%, its second daily gain, after better-than-expected US economic growth in the second quarter.

Oil prices rose 0.8 percent over the past week, their second weekly gain in the last three weeks, on the back of a slower supply in the world's top oil consumer.

US Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer are scheduled to meet with the Chinese Vice Premier Liu He for trade talks in Shanghai starting from Tuesday.

The new round of trade talks has been the first face-to-face since US President Donald Trump and Chinese leader Xi Jinping agreed to revive talks on the sidelines of the G20 summit held in Japan last month.

The round could lead to significant progress on the way for the world's two largest economies to reach a comprehensive trade deal that would once again improve global economic prospects and fuel demand prospects.

On the other hand, "Abbas Araghchi," Iran's chief nuclear negotiator, said on Sunday after an emergency meeting with the parties of the nuclear agreement in 2015, that the meeting was positive, but there are still unresolved issues, and that his country will continue to reduce its nuclear commitments if The Europeans did not implement the agreement.

Bitcoin rose in spot trading on Monday for the second day, to recover from a two-week low, but the search continues for a new catalysts, so prices can return above the $10,000 barrier again.

On the Bitstamp crypto market, Bitcoin rose by $187, or 1.9% to $9,725, from the opening price of $9,538, with the lowest level at $9,488.

Sunday's gain was 0.6%, the first gain in three days, thanks to recovery from a two-week low of $9,111 recorded earlier in the session.

The world's largest cryptocurrency, Bitcoin, lost 10% last week, the second weekly loss in the last three weeks, on renewed fears of a worldwide ban on cryptocurrency exchange.

The market value of cryptocurrencies on Monday rose by about $5 billion to a total of $267 billion, with most major currency prices continuing to recover in the market.

Bitcoin prices are currently trying to keep recovering from a two-week low, although most analysts expect the short-term trend to remain bearish.

Bitcoin prices in the market are waiting for new catalysts, to work on improving new levels of investment demand and to push prices back to above $10,000.

Many crypto experts are very optimistic about the long-term movement of Bitcoin, thanks to improved fundamentals in the market and the attraction of many major institutions to investment in the crypto industry.

Mike Novogratz, the founder of Galaxy Digital, said that institutional attention would push the price of Bitcoin to an all-time high of $20,000 before the end of the year.