Strong NFP data causes gold prices to drop, euro falls, Bitcoin grows due to inflows.

Strong NFP data caused gold prices to drop as the US labour market showed resilience. The June report revealed more jobs created than expected and a decrease in the unemployment rate, reducing expectations of a Fed rate cut. Concerns about the US budget deficit also impacted gold prices. Tariff pressure remains as Trump plans to impose tariffs on countries exporting goods to the US, increasing gold’s appeal as a safe-haven asset.

The euro fell against the US dollar after the strong NFP data release, with EUR/USD dropping by 0.45%. The data showed more jobs added in June than expected, reducing hopes of a Fed rate cut. Trump’s proposed bill increasing the budget deficit also influenced the currency pair. Trump’s tariff letters to countries could further impact EUR/USD.

Bitcoin saw growth above $110,000 due to institutional inflows into ETFs, Trump’s supportive statements, and easing regulatory pressure. Inflows into Bitcoin ETFs reached $11 billion recently, supporting BTC as a digital asset like gold. Trump’s positive remarks also boosted Bitcoin and related company shares. However, an increase in short positions in futures markets suggests potential volatility and correction risk if key resistance levels are broken.

Read more at Investing.com: Gold Prices Slide as Strong NFP Data Undermines Fed Rate Cut Hopes