At the close of trading on 22/7, the spot price of gold increased by nearly 35 USD to 3,423 USD per ounce. This is the highest level since 16/6. Currently, the price continues to rise, reaching 3,431 USD.

The market rallied due to trade uncertainty and falling US government bond yields. Investors are watching the situation as the deadline for new tariffs on US imports approaches.

World gold prices have increased by nearly 100 USD in the past two sessions. Chart: Kitco

"Trade tensions are driving up safe-haven demand. The US has only reached a few agreements in the past month. There is now speculation that the agreement with Europe may not materialize," explained Jim Wyckoff, senior analyst at Kitco Metals.

The yield on the 10-year US Treasury note is now at its lowest in two weeks. This further benefits the precious metal, which does not pay a fixed interest rate.

"Gold will continue to appreciate. Resistance is currently around 3,420 USD, while support is at 3,350 USD," predicted Jigar Trivedi, commodities analyst at Reliance Securities.

In the US stock market, the S&P 500 closed up 0.06% at 6,309 points on 22/7. This is the 11th time this year the index has hit a record high. The DJIA rose 0.4% to 44,502 points.

Healthcare stocks rose nearly 2%. FactSet data also shows that of the S&P 500 companies that have reported second-quarter earnings, 85% beat expectations.

Investors are also assessing the latest developments on trade. On 22/7, US Treasury Secretary Scott Bessent said he would meet his Chinese counterpart next week. The August 12th tariff deadline with China may also be extended. He affirmed that the US is about to announce "a series of trade agreements" with other countries.

Meanwhile, the Nasdaq Composite fell 0.4%, for the first time in seven sessions, as technology stocks declined. The WSJ reported on 22/7 that SoftBank and OpenAI's 500 billion USD AI project is facing difficulties and having to scale back its short-term plans.

Ha Thu (according to Reuters, CNBC)