Gold Rises to 3-Day High on Tariff Tensions, Silver Surges to 14-Year High.

Gold futures rose for the third straight session due to investor appetite for the safe-haven asset following President Trump's tariff threats. Silver reached its highest level in nearly 14 years.

Gold futures rose for the third consecutive session on July 1, 2025, driven by investor demand for the safe-haven asset following President Trump's recent tariff threats. Gold (XAU/USD) reached a significant milestone, trading above $3,340, as the metal's appeal as a tariff risk hedge gained traction [1].

President Trump's announcement of a 35% tariff on Canadian imports, effective August 1, has rattled global markets. This decision, coupled with warnings of broader tariffs, has fueled fears of a new wave of blanket tariffs, boosting demand for gold [1].

The Federal Reserve's June meeting minutes revealed growing concern among policymakers about the inflationary impact of escalating tariffs. The minutes noted that "most participants highlighted the risk that tariffs could have more persistent effects on inflation." This has increased the likelihood of a 25 basis point interest rate cut in September, as seen by a 62.9% probability according to the CME FedWatch Tool [1].

Silver prices also surged to their highest level in nearly 14 years. Silver (XAG/USD) traded at $36.59 per troy ounce on July 1, up 0.55% from Wednesday's close. This increase follows a 26.63% gain since the beginning of the year [2].

The Gold/Silver ratio, which measures the number of ounces of Silver needed to equal the value of one ounce of Gold, stood at 90.96 on Thursday, indicating a relative undervaluation of Silver compared to Gold [2].

Bitcoin, the world's largest cryptocurrency, also saw significant gains, hitting an all-time high of $116,781.10 in the Asian session on July 1. The rally was driven by institutional investor demand and crypto-friendly policies from the Trump administration [3].

References
1. [https://www.fxstreet.com/news/gold-spikes-as-safe-haven-demand-surges-on-trumps-tariff-threats-202507111217](https://www.fxstreet.com/news/gold-spikes-as-safe-haven-demand-surges-on-trumps-tariff-threats-202507111217)
2. [https://www.mitrade.com/insights/news/live-news/article-2-948421-20250710](https://www.mitrade.com/insights/news/live-news/article-2-948421-20250710)
3. [https://finance.yahoo.com/news/bitcoin-hits-fresh-record-high-165724637.html](https://finance.yahoo.com/news/bitcoin-hits-fresh-record-high-165724637.html)