International News 19 August 2025
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Gold Rises Ahead of Trump–Zelenskiy Talks and Fed Symposium
Gold prices strengthened on Monday (Aug 18, 2025) as U.S. Treasury yields declined and investors awaited a high-stakes meeting between President Donald Trump, Ukrainian President Volodymyr Zelenskiy, and European leaders. Spot gold rose 0.4% to US$3,347.57 per ounce by 12:14 local time, after hitting its lowest since August 1 earlier in the session. U.S. gold futures for December delivery gained 0.3% to US$3,393.70. Independent analyst Ross Norman said the weaker dollar and lower bond yields were boosting sentiment, particularly as gold approached the US$3,350 threshold. Benchmark 10-year Treasury yields retreated from a two-week high, adding support for the safe-haven asset. Geopolitical risks also kept investors cautious. Trump’s meeting with Zelenskiy and European leaders was expected to address efforts to end the Russia–Ukraine war, following peace discussions in Alaska where proposals included territorial concessions. Norman noted that the unpredictable outcome of these talks could sway gold in either direction. Markets are also eyeing the Federal Reserve’s Jackson Hole symposium for policy signals, with most economists expecting a September rate cut, potentially followed by another later this year. Lower rates typically favor gold, which offers no yield. Among other precious metals, silver rose 0.3% to US$38.10, platinum slipped 0.5% to US$1,329.09, and palladium advanced 0.8% to US$1,121.06.
Hedge Funds Accelerate U.S. Stock Buying Ahead of Fed Rate Cut Bets
Hedge funds ramped up U.S. stock purchases at the fastest pace in seven weeks through August 15, 2025, according to Goldman Sachs data seen by Reuters. The buying spree focused on indexes and assets sensitive to economic conditions, as investors anticipate a potential Federal Reserve rate cut in September. Markets currently price in an 85% chance of a 25-basis-point cut, while Fed Chair Jerome Powell is expected to provide further guidance at the Jackson Hole symposium this weekend. Signs of a slowing labor market, despite sticky consumer inflation, have strengthened expectations of a more dovish policy stance. Goldman noted that hedge funds rotated out of defensive sectors, including healthcare, consumer staples, and utilities—each posting their largest selloff in four months. Utilities, often used as a rate-sensitive proxy, saw particularly heavy outflows. Meanwhile, financials experienced modest net selling but recorded their highest gross trading activity since November 2024 and the second-largest in five years. Regionally, hedge fund inflows lifted most global markets, with Europe being the exception as it failed to attract fresh capital.
India’s Unemployment Rate Falls as Rural Hiring Strengthens
India’s unemployment rate eased to 5.2% in July from 5.6% in June, driven by stronger rural hiring ahead of the festival season and agricultural activity, according to government data released on August 18, 2025. Rural unemployment for those aged 15 and above dropped to 4.4% from 4.9%, while urban joblessness edged up to 7.2% from 7.1%. Youth unemployment in urban areas climbed to 19%, but rural youth unemployment fell to 13%. The labor force participation rate also rose to 54.9% in July, signaling stronger engagement in the workforce. The federal government plans to cut goods and services tax (GST) in October to boost domestic manufacturing and job creation, amid trade tensions with the U.S. following new tariffs from President Donald Trump. Meanwhile, S&P Global Ratings upgraded India’s long-term credit rating to “BBB” from “BBB-,” marking its first upgrade in 18 years, citing strong growth, credible monetary policy, and fiscal consolidation. India’s economy grew an average 8.8% between 2022–2024, the fastest in Asia-Pacific, and is projected to expand by 6.8% annually over the next three years.