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Duties, Markets, Trump: Italy Stock Exchange News

by Lucas Fernandez – World Editor
written by Lucas Fernandez – World Editor

European Markets Show Modest Gains Amid Trade Uncertainty

European stock markets opened with a generally positive sentiment, with Milan’s FTSE MIB index showing a slight rise. The benchmark index was trading at 39,971 points, up 0.51%.

This modest uptick occurs against a backdrop of significant market concerns. Investors are closely monitoring potential shifts in U.S. commercial policies, particularly the possibility of new tariffs.Specifically, there is apprehension regarding the implementation of 30% duties on European Union goods, which could take effect as early as August 1st.

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Business

Gold keeps the red amid resurgent USD demand; holds above $3,300 mark

by Priya Shah – Business Editor
written by Priya Shah – Business Editor

Gold Price Slides Amid Dollar’s Rise, Geopolitical Tensions Loom

Rate Cut Expectations and Fiscal Worries Could Limit USD Gains

Gold prices experienced a dip, reaching a one-week low of $3,300, influenced by a stronger U.S. dollar. Anticipation of Federal Reserve rate cuts and concerns over U.S. fiscal policy may curtail the dollar’s gains, even as geopolitical risks offer safe-haven support for gold.

Factors Influencing Gold Prices

The modest uptick in the U.S. Dollar’s demand has diverted investment away from gold. Yet, growing expectations of the Federal Reserve lowering interest rates later this year may prevent aggressive bets by USD bulls, indirectly supporting the precious metal.

Furthermore, anxieties regarding the potential impact of **President Donald Trump’s** tax cuts and spending bill on the nation’s debt could restrain gains for the USD. Market sentiment remains sensitive, particularly concerning **President Trump’s** trade policies and recent Israeli strikes in Yemen, which curb risk appetite and provide a floor for gold prices.

Market Analysis: Key Drivers

  • The dollar’s slight gains at the start of the week are pressuring gold prices, though this downside is somewhat mitigated by other supportive factors.
  • **President Trump’s** ‘One Big Beautiful Bill’ is projected to increase the national debt by $3.4 trillion over the next decade, exacerbating long-term fiscal challenges.
  • Concerns persist regarding economic repercussions from **Trump’s** tariffs and dovish stances from the Federal Reserve, potentially limiting significant USD appreciation.

Adding to global economic uncertainty, starting July 7th, the U.S. will be delivering tariff letters and/or deals to various countries, according to **Trump’s** social media posts. Also, any country seen aligning with anti-American BRICS policies will face an additional 10% tariff, with no exceptions.

  • Currently, investors are pricing in over a 70% likelihood that the U.S. central bank will reduce borrowing costs in September, with expectations of at least two 25 basis point rate cuts by the end of the year.
  • The Israeli military launched strikes on Houthi targets in Yemeni ports and a power plant after repeated attacks on Israel, sustaining geopolitical risks and bolstering gold as a safe haven.

Analysts await the release of the FOMC minutes on Wednesday for further market direction. According to a recent Reuters poll, economists are divided on the timing of the Fed’s first rate cut, with some predicting it as early as July, while others foresee a later move.

Technical Outlook

Gold price chart

Repeated failures to sustain momentum above the 100-period Simple Moving Average (SMA) on the 4-hour chart, coupled with a drop below $3,300, may signal further losses for gold. Should negative traction continue, the price might descend towards the $3,270 support zone, potentially reaching the $3,248-3,248 region.

Conversely, the $3,324-3,325 area presents immediate resistance, followed by the $3,342-3,343 zone. A breakthrough beyond the $3,352-3,355 area could propel gold prices higher, aiming to reclaim the $3,400 level.

US Dollar FAQs

The US Dollar (USD) is the official currency of the United States of America. It accounts for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022.

The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates.

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Business

Elsewhere they make a huge scythe, they only got to state -level screaming at home

by Priya Shah – Business Editor
written by Priya Shah – Business Editor

Bitcoin Eyes Record High Amidst Market Optimism

Analysts predict a potential surge to $116,000 by month’s end, fueled by macroeconomic factors and possible Fed moves.

Bitcoin is showing signs of strength, with analysts suggesting it could soon test its all-time high of $111,970, perhaps as early as May 22. The cryptocurrency briefly retreated following disappointing U.S. labor market data, but the correction was short-lived.

Summer Hype Follows Weak Period

Historically, the third quarter tends to be a weaker period for Bitcoin and the broader cryptocurrency market. Coinglass data indicates that Bitcoin has seen an average gain of 5.47% in the third quarter since 2013. If this pattern holds, a price point around $111,000 by September 30 is anticipated.

Currently, Bitcoin’s dominance is nearing 70%, up almost 13% this year, indicating continued market favor. Moreover, the sell order wall appears lighter, and Coinbase bitcoin premiums remain high.

The $108,000 level is seen as a short-term resistance, but analysts are optimistic that it will soon be breached. Weaker labor market data could prompt the Federal Reserve to cut interest rates sooner rather than later, potentially boosting liquidity for risk assets like cryptocurrencies. For instance, Goldman Sachs anticipates a rate cut as early as September (Goldman Sachs, 2025).

Some analysts believe such a Fed move could happen as early as July, benefiting cryptocurrencies and tech stocks. Markets appear to have already priced in a weaker U.S. dollar, with capital flowing into assets like stocks, commodities, and Bitcoin.

Political Pressure on the Fed

Political pressure from U.S. President Donald Trump on the Federal Reserve is another factor. In April, Trump stated: “During the Fed President Jerome Powell, it can’t come fast enough.”

Spot Bitcoin ETFs in the U.S. have seen significant capital inflows since May 1. Markus Thielen, Research Manager at 10x Research, suggests that Trump may already have someone in mind to replace the current Fed chair, favoring a looser monetary policy that could favor Bitcoin and other cryptocurrencies.

“It can only be a matter of time to mark Trump a new Fed president leaning towards interest rate cuts, like Arthur Burns in Nixonian times, whose obedience to political pressure contributed to the 1970s inflation to get rid of his release.”

—Markus Thielen, Research Manager of 10x Research

Thielen forecasts that Bitcoin could reach $116,000 by the end of the month due to these macroeconomic factors.

Bitcoin exchange rate evolution over the past year

At the state level, ten U.S. states are working on legislation to incorporate cryptocurrencies into their commercial codes and create Bitcoin reserves. Companies are also increasingly investing in Bitcoin, with 26 well-known firms adding the asset to their balance sheets in June alone, bringing the total to 250.

Hungary’s Strict Crypto Regulations

Meanwhile, in Hungary, investors face potential imprisonment for cryptocurrency-related activities, according to fintech.hu. The amended Criminal Code introduces new crimes related to unauthorized crypto services, targeting both service providers and investors.

Penalties range from up to two years for minor offenses to eight years for significant unauthorized activity. Critics argue that the legislation’s timing is problematic, coinciding with the EU’s MiCA (Markets in Crypto-Assets) decree, which aims to provide a unified framework for cryptocurrencies.

Unlike MiCA, the Hungarian regulation was introduced unexpectedly, with many details still unclear. Some critics compare it to drug trafficking, where purchase is penalized, and sellers face even greater risks, even though most users purchased digital devices from taxes.

As a result, domestic crypto companies are considering relocating to countries like Lithuania or Estonia, where regulations are more transparent and supportive. There are also suggestions that Hungary might introduce a concession system, limiting such activities to state-designated actors, similar to the tobacco or casino industries.

While owning and moving cryptocurrencies between one’s own wallets remains legal, converting crypto through unregistered or unauthorized service providers can lead to severe consequences. Therefore, using platforms that comply with the MiCA Regulation and have a valid European license is advisable to avoid legal and financial risks.

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Business

Could Donald Trump’s power struggle with Federal Reserve create next financial crisis?

by Priya Shah – Business Editor
written by Priya Shah – Business Editor

Trump’s Fed Fight: Economic Risks Mount

The former US president is reigniting his feud with the Federal Reserve, potentially destabilizing America’s economy. This clash over interest rates and monetary policy could trigger financial turmoil, impacting both domestic and global markets.

Powell’s Stand

The core conflict revolves around Donald Trump and current Fed Chair Jerome Powell. Trump, during his initial term, criticized Powell for not aligning with his economic directives. Now, with Trump eyeing a return to power, the conflict has escalated.

“Not permitted under the law.”

—Jerome Powell, Fed Chair

Powell has resisted Trump’s demands to immediately cut interest rates. This defiance has led to public insults from the former president, who has labeled Powell with various derogatory terms. The US national debt stands at around 120% of GDP, a level that could cause a debt crisis (Bureau of Economic Analysis).

Rates, Tariffs and Debt

The former president is pushing for lower rates to boost his approval ratings and address the burgeoning US government debt. The annual interest on the $36 trillion debt now exceeds America’s defense spending. Powell, however, has placed the blame on the President’s tariff policies. Cutting rates could cause an inflation spike.

Donald Trump appointed Jerome Powell as Fed chair during his first term as president.

Market Reactions and Global Implications

The bond market’s unease is palpable, with investors shifting money out of America, causing the dollar to plummet. The primary worry is the Fed’s independence and its capacity to manage monetary policy responsibly. Trump has even suggested he may try to appoint himself to replace Powell.

Could Donald Trump’s power struggle with Federal Reserve create next financial crisis?
Jerome Powell testified before a US Senate committee last week.

The showdown goes beyond debt servicing; it involves the credibility of the world’s most powerful financial institution. The outcome of this high-stakes battle could have significant consequences for the American economy and the global financial system.

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Business

Bank of Italy Gold: Return From Fort Knox Planned?

by Priya Shah – Business Editor
written by Priya Shah – Business Editor

Here’s a breakdown of the text, focusing on the key points and arguments:

Main Idea:

The article discusses the growing debate in Germany and Italy about repatriating their gold reserves held in the United States, primarily at the Federal Reserve (Fed). The concern stems from increasing geopolitical uncertainty, distrust in American monetary policy, and the fear that the US could potentially politicize gold reserves for its own purposes.

Key Points:

Significant gold Reserves: Germany and Italy hold considerable gold reserves, ranking second and third globally, respectively, after the United States. A significant portion of these reserves is stored in the US, representing a value exceeding $245 billion.
 Historical Context: Historically, both countries chose to store gold in the US due to the perceived stability and security of the Federal Reserve.
Shifting Concerns: The article highlights a change in outlook driven by several factors:
 Geopolitical Instability: Increased global uncertainty makes countries more cautious about the location of their strategic assets.
Trump’s Criticism of the Fed: Former President trump’s attacks on the Federal Reserve’s independence raised concerns about potential political interference in monetary policy.
 fear of Politicization: There’s a growing fear that the US could use its control over foreign gold reserves as a tool for political or economic pressure.
Political Reactions:
 Germany: The issue of gold repatriation has been discussed for years. In 2013, Germany began repatriating a portion of its gold from New York and Paris. There’s broad political consensus in Germany for further repatriation.
Italy: In 2019, giorgia Meloni (now Prime Minister) called for the immediate repatriation of Italian gold. While she hasn’t emphasized the issue as Prime Minister, the underlying concerns remain.
 Arguments for Repatriation:
National Security: Gold is considered a strategic resource that should be kept secure, especially during times of uncertainty.
 Monetary Sovereignty: Repatriation is seen as an act of economic sovereignty, ensuring that a country has direct control over its assets.
Avoiding Foreign Control: Bringing gold back home prevents a foreign state from potentially using it against the country’s interests. Arguments Against Repatriation:
Logistical and Operational Costs: repatriating gold involves significant expenses.
 Current Italian Government’s Stance: The current Italian government, while historically advocating for repatriation, doesn’t seem to be prioritizing the issue at the moment.

In essence, the article presents a situation where historical trust in the US as a safe haven for gold reserves is being challenged by new geopolitical realities and concerns about American monetary policy. This is leading to renewed calls for Germany and Italy to bring their gold back home.

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