Key Takeaways
- Tariff-related uncertainty resurfaced after President Trump warned of new tariffs on Japan and threatened penalties for nations with ties to Russia, prompting a shift into safe-haven assets.
- Gold rose to $3,322.68/oz, fueled by demand for protection amid Fed uncertainty and geopolitical stress.
- Bitcoin (BTC/USD) slipped to $106,995, as digital assets lagged the broader risk rally.
- U.S. equities rose, with the S&P 500 up 0.52% and Dow up 0.63%, lifted by rate-cut hopes and tech-led momentum.
On July 1, gold prices rose sharply as the weakened dollar and escalating geopolitical risks drove investors toward safe-haven assets.
The U.S. dollar dropped to a three‑year low amid rising speculation that the Federal Reserve could be pressured into early rate cuts. The narrative was reinforced by President Trump calling Fed Chair Jerome Powell ‘terrible’ and signaling that he may replace him before his term ends, raising fresh concerns over the central bank’s independence.
Dollar weakness was compounded by Trump’s threat to reinstate tariffs on Japanese imports from July 9, unless trade talks see progress, and to retaliate against countries perceived to support Russia.
Additionally, Wall Street traded higher as equities benefited from expectations of a more dovish Federal Reserve. However, Bitcoin eased slightly to around $106,500 amid cautious sentiment in crypto markets.
Global Indices
S&P 500 (SPX): 6,204.94 (+0.52%)
Dow Jones Industrial Average (DJI): 44,094.77 (+0.63%)
Nasdaq Composite (IXIC): 20,369.73 (+0.47%)
Nikkei 225 (NK2251D): 40,100.0 (–1.04%)
Euronext 100 Index (N100): 1,580.86 (–0.42%)
FTSE 100 (FTSE): 8,774.30 (+0.16%)
Cryptocurrencies Market
Bitcoin (BTC/USD): 106,995 (–0.17%)
Ethereum (ETH/USDT): 2,459.45 (–1.04%)
Solana (SOL): 163.35 (–1.88%)
Binance Coin (BNB/USDT): 653.70 (–0.49%)
Commodities
Gold (GOLD): 3,329.68 (+0.60%)
Silver (SILVER): 36.15 (+0.15%)
WTI Crude (USOIL): 64.77 (–0.23%)
Brent Crude (BRENT): 65.31 (–0.63%)
Individual Stocks
Apple (AAPL): 205.17 (+2.03%)
Microsoft (MSFT): 497.41 (+0.30%)
Meta Platforms (META): 738.09 (+0.61%)
NVIDIA (NVDA): 157.99 (+0.15%)
Tesla (TSLA): 317.00 (–1.84%)
Amazon (AMZN): 219.39 (–1.75%)
Forex
U.S. Dollar Index (DXY): 96.744 (–0.04%)
Euro/U.S. Dollar (EUR/USD): 1.1786
British Pound/U.S. Dollar (GBP/USD): 1.3739 (+0.06%)
U.S. Dollar/Japanese Yen (USD/JPY): 143.804 (–0.12%)
Market Wrap-Up
On July 1, rate-cut expectations helped lift U.S. stocks, but renewed trade tensions and political pressure on the Fed kept demand for gold firm. Investors balanced exposure between equities and safe havens, while crypto markets edged lower and currency flows shifted.
For now, focus remains on upcoming economic data and policy signals as markets navigate a fragile environment.
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