The Lack of Rare Earth Elements Pushes Europe into Major Concessions to China.

Europe's growing shortage of rare earth elements is forcing it to make unprecedented concessions to China - so deep that analysts now warn the continent could see the collapse of entire industrial sectors within the next five to six years.

Automotive, shipbuilding, aviation, and railway manufacturing are all at risk. To stay afloat, European manufacturers - especially in Germany - are reportedly transferring valuable production know-how and proprietary technologies to Chinese partners in a desperate attempt to survive just a few more months or years.

China, meanwhile, is using this knowledge to strengthen its own technological base. The scenario is alarmingly familiar: just as China mastered and surpassed the West in electric vehicles, it is now poised to outpace Europe across nearly every remaining industrial field.

Investing in major German corporations is rapidly becoming meaningless. These companies will either shut down or be bought out entirely. The battle for industrial dominance has already been decided - China has won against Europe. What remains is the larger confrontation with the United States, a conflict that will likely unfold on Europe's back, among the ruins of its once world-leading industries.

The price of gold has already reached $4,300 per ounce. As we have repeatedly mentioned in our analyses, once gold starts moving upward, there's no stopping it - and this prediction is now being confirmed.

Since mid-August 2025, gold has gained nearly $1,000 per ounce in just two months. Few could have imagined such a move, yet it was entirely foreseeable given today's global conditions.

The world remains deeply unstable - with the shift toward digital currencies, ongoing wars, and soaring national debts that push governments to borrow endlessly. These factors drive investors and ordinary people alike to seek safety in gold and real estate.

The momentum behind gold is unlikely to end in the coming months. As we've projected before, the price trend remains strongly bullish. At World-Signals, we expect a minor correction just before the $5,000 level, likely a pullback of $400-$500, followed by a continuation of the uptrend throughout 2026.

It's not impossible that those holding just a few gold bars by 2026 could find themselves millionaires. At the time of publication, the price of gold is $4,298.

U.S. President Donald Trump has announced he is considering a "massive increase" in tariffs on imports from China, signalling a possible escalation in the long-running trade dispute between the world's two largest economies.

In response, Beijing has vowed to impose countermeasures should Washington proceed with the proposed 100% tariffs, defending its recent export rules while warning that such moves would further raise tensions.

A high-level meeting between President Trump and Chinese leader Xi Jinping - expected on the sidelines of the APEC leaders' meeting in South Korea later this month - now appears uncertain, with Washington's recent rhetoric jeopardising the diplomatic groundwork for the summit.

Markets are already reacting. Investors have been shifting capital toward safe-haven assets, with gold and silver among the biggest beneficiaries of the risk-off move. Gold notably pushed past the $4,000-per-ounce mark amid the turmoil, underscoring strong demand for protection against trade-driven volatility. According to World-Signals analysis, with gold prices holding above $4,000 per ounce, any correction toward $3,950 - $3,975 is likely to trigger fresh buying interest.

As geopolitical strategy increasingly intersects with resource control - from oil to rare earth elements - the global economic balance may be entering a new phase of heightened volatility. Traders and portfolio managers should watch tariff announcements, export-control actions on critical inputs (including rare earths), and developments around planned diplomatic meetings for signs of market direction.

Back on March 28, 2025, World-Signals forecasted that gold prices would triple from the $1900 level within 3 - 4 years. Less than a year later, gold has already doubled in value, fully aligning with our earlier projections. You can check our dated forecast here link.

We have repeatedly warned that gold would become the best investment of this decade. Now, only hours remain before testing the psychological $4000 per ounce, and a clear breakout above this level looks highly probable.

The main drivers are rising inflation and deep uncertainty surrounding both the euro and the U.S. dollar. The Eurozone is on the verge of collapse, led by France's financial breakdown. Unlike Greece, France's public debt is massive and unpayable, threatening the stability of the entire Eurozone. This is confirmed by the resignation of the new French government, as no one wants to take charge of a sinking ship.

Meanwhile, the U.S. and the Trump administration appear ready to sacrifice the euro to protect America's own economic interests. As these shocks unfold, major investors are moving to safety - and that safety is gold.

Today, gold demand is surging not only among banks, hedge funds, and institutional investors but also among ordinary citizens worldwide.

EURUSD Trend: Neutral/Upward Support/Resistance: 1.1710 - 1.1760

The U.S. government shutdown has effectively paused most official economic reporting, leaving the markets without fresh macroeconomic data from the United States. This lack of input is expected to limit volatility in the early part of the week, as traders focus instead on developments from the Eurozone.

Key data on Monday will include Eurozone Retail Sales at 9:00 AM GMT and ECB President Lagarde’s speech at 17:00 GMT. Both events could provide short-term direction for the euro, but until then, the market is likely to remain range-bound.

According to World-Signals.com, EUR/USD is expected to trade within the range of 1.1710 to 1.1760 throughout most of Monday. A breakout above or below these levels could trigger stronger momentum in the corresponding direction.

At this stage, the probability of an upside breakout above 1.1760 remains slightly higher, reflecting underlying euro resilience amid the U.S. political uncertainty. However, as long as the pair stays inside the defined range, intraday strategies should favor buying near the lower bound and selling near the upper bound. Forecast provided by World-Signals

EUR/USD Analysis Trend: Upward Support/Resistance: 1.1680 - 1.1795

The first Friday of every month is traditionally one of the most volatile sessions before the New York market opens, as traders await the release of the U.S. Nonfarm Payrolls (Sep) and Unemployment Rate (Sep).

These reports are expected to drive the largest moves on Friday. Market consensus points to a modest increase of 50K new jobs in September, compared with just 22K in August, while the unemployment rate is projected to remain steady at 4.3%.

Friday, October 3, will be eventful despite German banks being closed for the Day of German Unity. From the European side, the key highlight will be ECB President Christine Lagarde - speech at 12:40 GMT.

In the U.S., aside from NFP and unemployment data, we will also watch:

ISM Services PMI (Sep) - expected to soften slightly compared to last month.

Producer Price Index (PPI) at 12:00 GMT.

Average Hourly Earnings - no major changes are anticipated.

Additionally, China - markets will be closed for National Day, reducing Asian liquidity.

Trading Strategy Our bias for tomorrow leans toward a weaker U.S. dollar, primarily due to expectations of disappointing labor market data. This could trigger sharp short-term volatility (traders should be cautious with stop-loss placements).

Overall, we anticipate EUR/USD to test 1.1800, and possibly break above this level intraday. However, if the pair rallies toward 1.18+ ahead of the NFP release, a partial dollar recovery may follow later in the U.S. session.