Gold Under Pressure as Market Sentiment Favors Risk Assets

Market Overview

Equities continued their rally, with both the S&P 500 and Nasdaq hitting new record highs. This strength was driven by solid corporate earnings and growing optimism surrounding U.S. trade agreements. Tesla saw a mid-week dip following earnings but rebounded 3.5% over the weekend. Alphabet posted strong results, with its stock gaining over 4% during earnings week. In Europe, the auto sector stood out with a notable weekly gain of more than 4%.

In the bond market, yields on U.S. Treasuries touched intraday lows after former President Trump expressed confidence that Fed Chair Jerome Powell would initiate rate cuts. Meanwhile, gold prices came under pressure, sliding more than 1% intraday. As the Asian session opened on Monday, sentiment was further boosted by news of trade deals between the U.S. and Europe. U.S. equity futures climbed, with Nasdaq 100 futures up 0.5% and S&P 500 futures gaining 0.4%. In contrast, spot gold continued to decline, briefly approaching $3,320.50.

Upcoming Highlights

● U.S. Durable Goods Orders (June Preliminary): -9.3% MoM

Dragged down by a sharp drop in aircraft orders, June durable goods orders recorded the steepest monthly decline since the early days of the COVID-19 pandemic. The U.S. Commerce Department reported a 9.3% month-over-month drop on Friday, slightly better than market expectations of -10.7%. The prior reading was +16.4%. The data reflects business caution toward capital expenditures amid trade and fiscal policy uncertainty—the worst performance since 2020.

● South Korea: Worlds Best-Performing Stock Market in 2025

South Korea is aggressively advancing corporate governance reforms modeled after Japans initiatives. These reforms aim to reduce chaebol dominance and enhance minority shareholder rights. Early signs are promising: in July alone, the market saw a net inflow of over $3 billion in foreign capital. As a result, the KOSPI index has gained over 3% year-to-date, with total market capitalization reclaiming the $2 trillion mark. Analysts note that whether the reforms can be effectively implemented will determine whether foreign inflows continue and if the KOSPI can reach its ambitious 5,000-point target.

Key Focus

22:30 (GMT+8) – U.S. July Dallas Fed Manufacturing Business Index