Gold, Bitcoin Surge as Dollar Weakens Amidst US Fiscal Woes

Stock markets are experiencing an upward trend on Tuesday, attempting to counteract the bearish sentiment of the preceding week. European markets and US stock futures are indicating a stronger opening, partially recovering from Monday's declines.

The improved market mood is partly attributed to a decrease in oil prices, with Brent crude trading below $90 per barrel. This decline occurs despite Iran's threats of retaliation against new US economic sanctions.

Tech stocks, particularly in the hardware and semiconductor sectors, which were heavily impacted by Monday's sell-off, are showing signs of recovery in pre-market trading. Nvidia's share price has risen by nearly 1%, as investors anticipate its earnings report, which could potentially reinvigorate the AI trade.

Gold prices have seen a significant boost, reaching their highest level since May. The precious metal is positioned for its strongest monthly performance since 1999, having risen 15% over the past month. This rise is linked to a weakening dollar and concerns over the US fiscal situation.

The 'Dollar Alt' trade is gaining momentum, with Bitcoin surpassing the $80,000 mark, registering a 4% gain on Tuesday. The dollar itself remains weak, contributing to the strength in gold and Bitcoin prices.

In Europe, Germany's Dax index is performing strongly, benefiting from positive Q2 GDP data and a better-than-expected IFO report. Markets anticipate a potential recovery in US stocks, but overall direction may remain uncertain leading up to key economic data releases and the Jackson Hole central bank symposium.