Weekly Markets Monitor: Fed’s shift
25 August, 2025
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Highlights
- Last week, the US Fed signaled potential rate cuts amid mixed economic signals. The US labor market softened while business activity and housing data surprised on the upside. In Europe, UK inflation surged, Germany’s economy slipped, while India saw its fastest business growth in two decades and Japan faced a sharp drop in exports.
- Major global equity equity markets ended the week higher, while US Treasury yields and the US dollar fell on expectations of lower interest rates. Oil prices also closed the week with gains.
- Historical data shows that while the average performance during the 14 days post Jackson Hole is flat, gold’s negative correlation with interest rates usually intensified leading up to the gathering – this year was no exception – and post the event. This suggests that monetary policy expectations may take the driver’s seat of gold’s performance now.
Chart of the week - What happens post Jackson Hole?
Based on LBMA Gold Price PM, S&P Index and US 10-year Treasury yield 14 days after Jackson Hole gathering in the past 10 years.
Source: Bloomberg, World Gold Council
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