Wall Street Extends Records, Gold Prices Hit $3,400 Amid Trade Tensions, Fed Criticism.

Wall Street indices extended their records, with the S&P 500 and Nasdaq 100 rising 0.6% and 0.8%, respectively. Gold prices jumped 1.5% to $3,400 per ounce, and the US dollar index slipped below 98 amid concerns over the Fed's independence. Bitcoin and Ethereum rose 1.1% and 1.8%, respectively. The Dow Jones added 260 points, or 0.6%.

On Monday, Wall Street indices extended their records, with the S&P 500 and Nasdaq 100 rising 0.6% and 0.8%, respectively [1]. The S&P 500 closed above 6,300 for the first time ever, while the Nasdaq Composite notched its sixth consecutive record close. Meanwhile, the Dow Jones Industrial Average (^DJI) closed just below the flatline.

Gold prices jumped 1.5% to $3,400 per ounce, driven by a 1% rise in gold as the US Dollar Index dropped below the 98.00 mark. The US Dollar Index (DXY) fell 0.64% to 97.83, reflecting broader risk appetite and trade uncertainty [3].

Bitcoin and Ethereum rose 1.1% and 1.8%, respectively, as investors sought safe-haven assets amid geopolitical tensions and trade uncertainties. The Dow Jones added 260 points, or 0.6%, following a mixed day.

Earnings season is in full swing, with tech heavyweights like Alphabet (GOOG) and Tesla (TSLA) set to release updates on Wednesday. Strong results could validate stretched valuations as the market's focus on AI growth is once again attracting comparisons to historic tech bubbles [1].

Trade policy remains a key concern, with the EU preparing a retaliation plan as the August 1 tariff deadline approaches. The EU is said to be stepping up the scope of its retaliation if it fails to strike a trade pact with the US. Meanwhile, the White House's August deadline for new tariffs was reaffirmed by Commerce Secretary Howard Lutnick [1].

The Federal Reserve's independence was called into question after the Wall Street Journal reported that US Treasury Secretary Bessent recommended Trump not to fire Fed Chair Jerome Powell. This news could impact market sentiment and the US Dollar's performance [3].

In other economic news, the US economic docket remains scarce, with the release of housing data, Jobless Claims for the week ending July 19, and Durable Goods Orders data expected this week.

Gold's technical outlook remains bullish, with the precious metal clearing the top of the $3,300-$3,350 range, reaching a five-week high of $3,401. If gold stays above $3,400, expect a test of the June 16 high of $3,452, ahead of the record high of $3,500 [3].

References:

[1] https://finance.yahoo.com/news/live/stock-market-today-sp-500-crosses-6300-nasdaq-notches-record-with-big-tech-set-to-take-earnings-spotlight-200119190.html
[2] https://www.nasdaq.com/articles/thomson-reuters-replace-ansys-nasdaq-100-index
[3] https://www.mitrade.com/insights/news/live-news/article-2-975217-20250722
[4] https://www.economies.com/forex/news/us-dollar-recovers-from-trump-powell-drama-46893