Gold prices reversed their gains and fell by more than 1% on Friday, 28 August after US Fed Chair Kevin Warsh hinted at interest rate hikes and following downward revision in US non-farm payrolls data.

Natural gas prices in Asia and Europe jumped on Friday as the market digested reports that Qatar has extended the force majeure on its LNG deliveries into November amid still blocked transits through the Strait of Hormuz.

October NY world sugar #11 (SBV26 ) is down -0.64 (-3.52%) today, and October London ICE white sugar #5 (SWV26 ) is down -13.20 (-2.52%). Sugar prices gave up an early advance today and sold off sharply, as weakness in the Brazilian real prompted lon...

Expectations for a near-term Federal Reserve rate hike to curb inflation strengthened, pushing the 2-year Treasury yield up to 4.32%. Traders lifted the implied odds of a hike as soon as next month to nearly 60% from 35%, while the 10-year yield rose to 4.70%. U.S. stocks were mixed in midday trading, with the Dow edging higher and the Nasdaq lower.

Fed Chair Warsh said the economy appears to have strengthened and pledged to bring inflation back to the central bank’s 2% target. The S&P 500 rose 0.37%, the Dow added 0.34%, and the Nasdaq 100 gained 0.18%. Chipmakers and AI infrastructure shares lagged, with Marvell Technology sliding 7% after a weaker-than-expected gross-margin outlook. The University of Michigan’s Aug 5-10 year inflation expectations were unchanged at 3.3%, in line with expectations.

Federal Reserve Chair Kevin Warsh said inflation is not meaningfully slowing and stressed policymakers must be confident it is moving toward the Fed’s 2% target, or the central bank still has “work to do.” After the remarks, short-term U.S. Treasury yields jumped and markets lifted the implied probability of a September rate hike to above 50%. Risk assets came under pressure, pulling bitcoin back below $80,000.

Fed Chair Warsh said inflation remains the central bank’s main focus even as the labor market cools. He reiterated that the Fed’s 2% inflation target is fixed. Warsh said multiple indicators show inflation is still above that goal, citing July readings of 3.7% for PCE inflation and 3.4% for CPI inflation.

U.S. stocks held steady in intraday trading, while bond markets quickly priced in higher odds of a Federal Reserve rate increase. The 2-year Treasury yield jumped to 4.30%, and traders lifted the implied probability of a rate hike next month to 46%. Kevin Warsh’s hawkish remarks prompted investors to reassess the path of interest rates, after his tough stance on bringing inflation under control was seen as potentially leading to action.