Economic Tensions Heighten as Global Markets Await Fed's Next Move

Global markets are in a cautious state, with gold prices declining as traders await the Federal Reserve's Jackson Hole symposium. U.S. Treasury yields increased, oil futures rose amid strong demand, and concerns about the Fed's independence surfaced after remarks by President Trump. European markets struggled, and investors focused on the potential September rate cut.

Global markets exhibited caution on Thursday, with traders eagerly awaiting the Federal Reserve's Jackson Hole symposium. As the event began, attention sharply turned to Fed Chair Jerome Powell's upcoming speech, hoped to provide cues about the possibility of a September U.S. rate cut.

Financial markets observed a mix of movements; U.S. Treasury yields inched up, oil futures increased due to solid U.S. demand, and the dollar strengthened slightly. Meanwhile, stocks lingered near recent highs, with the MSCI World Equity Index retreating by 0.21% amid market pressures.

Tensions rose over the independence of the Fed as President Trump called for a resignation within the institution. This news sparked concerns, though the market reaction was limited. Spot gold prices dipped, reflecting the complex interplay of domestic and international economic factors impacting the sector.

(With inputs from agencies.)