FX.co ★ Gold Hovers Near 3-Week High

Gold prices edged close to $3,350 per ounce on Monday, marking a near three-week high, as demand for safe-haven assets climbed after President Donald Trump announced new tariffs. Trump’s letters to both the European Union and Mexico introduced a 30% tariff, alleging that their trade deficits with the United States posed a "major threat" to national security. In response, both the EU and Mexico labeled the tariffs as unjust and disruptive, with the EU opting to extend its suspension of retaliatory measures against US tariffs until early August while advocating for a negotiated resolution. These actions are part of a wider set of tariff increases impacting more than 20 countries, including Japan, South Korea, Canada, and Brazil, along with a 50% duty on copper imports. These new measures are scheduled to take effect on August 1st. Meanwhile, investors are keenly monitoring significant US economic reports this week—such as the Consumer Price Index (CPI), Producer Price Index (PPI), industrial production, and retail sales—for more insights into the Federal Reserve's forthcoming policy decision.