Global Markets Weaken Ahead of Jackson Hole, Gold Rises to Record Highs

Global markets started the week on a cautious note due to several key events unfolding in the Middle East, the direction of US interest rates, and Nvidia's financial reports. Investors were uncertain about the outcome of US-Iranian negotiations, with US Treasury Secretary Scott Bessent expected to announce new economic sanctions against Iran.

The uncertainty surrounding the Strait of Hormuz has kept oil prices high, adding to global inflationary pressures. Market estimates suggest that the Federal Reserve may raise interest rates once before the end of the year, although this could change based on US economic data and Middle East developments.

Investors are closely watching Fed Chairman Kevin Warsh's speech at the Jackson Hole Economic Policy Symposium on Friday for clues about future monetary policy. US economic growth data and the personal consumption expenditures price index (PCE) will also be closely watched, as they impact the market's reading of Fed policy.