Real Vision: Finance & Investing Eurozone Inflation, UK Gilt Surge, and Gold’s Record High: PALvatar Market Recap, September 2 2025
Sep 2, 2025
Discover how persistent inflation in the Eurozone is reshaping market expectations. UK gilt yields are surging, prompting discussions about borrowing costs. Gold prices soar to record heights amid speculation of a Federal Reserve rate cut. The pound's downward spiral adds to the intrigue while investors assess a significant court ruling related to Trump's tariffs. Plus, insights into the unexpected debut of Trump's WLFI crypto keep the cryptocurrency buzz alive. Stay updated as key U.S. economic data is on the horizon!
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Eurozone Inflation Remains Sticky
- Eurozone core inflation stayed at 2.3% in August, slightly above expectations and keeping pressure on ECB policy.
- This sticky inflation reduces the likelihood of an ECB rate cut later this year.
UK Gilt Yields Surge
- UK 30-year gilt yields climbed to near 5.7%, the highest since 1998, raising long-term borrowing costs.
- The surge pressured the pound and complicates Chancellor Rachel Reeves' autumn budget planning.
Gold Hits Record On Fed Cut Odds
- Markets price a near-certain Fed rate cut this month, boosting gold to record highs above $3,500 per ounce.
- Silver is also rallying near multi-year highs as investors position for easier US monetary policy.