Tech under pressure but Gold and Bitcoin move higher

It has been another good day for gold and bitcoin, while tech stocks continue to struggle, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

FTSE 100 climbs as tech struggles

“It has been a better start to the week in London than it has for tech names across the globe. The FTSE has put the weakness of early August firmly behind it, helped along by strength in gold, which has offset the weakness in BP and heavyweight pharmaceutical stocks. It is a very different story for indices like the Nasdaq 100, where the jitters seen in Asia around Samsung’s shareholder returns plan and Alibaba’s hefty share placement have carried over into the US session. Tech had been at risk of weakness thanks to Nvidia’s earnings and the usual pre-game nervousness, but the news from other tech giants has certainly meant that an already weak tape has been pushed further into the red.”

Dollar alternatives soar

“The rallies in gold and bitcoin have continued on the first day of the new week as the shockwaves of Bessent’s Treasury market intervention continues to make themselves felt. The word ‘debasement’ has been absent from market discussions for some time, but the rather odd moves in Washington seem to raise the spectre of the dollar being undermined once more. Its position as the dominant currency remains secure, but both bitcoin and gold bulls will be thanking the US Treasury for its interesting turn in fiscal policy.”