Closing post
And finally, the UK stock market has slipped away from today’s record high.
The FTSE 100 has closed 17 points higher, or +0.17%, at 10,171 points, having scaled a new peak of 10,277 earlier today.
The index slipped back as miners, and precious metal produceds, slipped as the gold, silver and copper prices dropped back dramatically from their latest highs.
Gold is now down 2% today, while silver is 0.8% lower.
Oil is still higher, though – Brent crude is 3.3% up today at $70.66 a barrel, on concerns that the US might attack Iran.
Iran’s foreign minister, Abbas Araghchi, will travel to Ankara for talks aimed at preventing a US attack, as Turkish diplomats seek to convince Tehran it must offer concessions over its nuclear programme if it is to avert a potentially devastating conflict.
Swiss bank UBS has today increased its gold price target to $6,200 per ounce for March, June and September 2026, compared with a prior forecast of $5,000.
However, the bank projected a modest decline to $5,900 per ounce by end-2026, Reuters reports.
David Meger, director of metals trading at High Ridge Futures, says:
“We are seeing a dramatic sell-off after precious metals made new recent all-time highs.”
The bitcoin price is also sliding, as investors pile out of risky assets.
It’s down 5% today at $84,630.
The slump in the gold and silver price is dragging the FTSE 100 away from its record high.
Precious metals producer Fresnillo, which had been among the top risers, is now one of the top fallers, down 6.7%.
Gold and silver fall back from record highs
Ouch! The gold and silver prices are now turning south.
Having hit record highs this morning, precious metal prices are now lurching lower.
Gold, which almost touchde $5,600 an ounce this morning, is now down 4.4% today at $5,164/oz.
Silver is down over 5% too at $109/oz, having touched $120/oz earlier.
These sudden moves follow a dramatic rise in precious metals prices during January, as speculators have piled into gold and silver.
Bizarre vol pic.twitter.com/XBmnhxVJN2
— Andreas Steno Larsen (@AndreasSteno) January 29, 2026
The dollar, meanwhile, has slightly strengthened.
Neil Wilson, Saxo UK investor strategist says:
In the last few minutes gold and silver prices cratered seemingly under the weight of their own excess after ballooning to record highs. Copper too took a nosedive. We are seeing extreme volatility in metals and FX markets which is leading to serious dislocations and may well gnaw away at equity market sentiment.
SPX trades below 6,900 at last look with Microsoft’s 11% decline causing huge damage, while Meta steadied things a bit at +8% post earnings.
The sharp reversal in metals took the shine off the FTSE 100’s rally, with the index dropping sharply in tandem with the move in metals. Earlier The FTSE 100 hit a fresh record high as mining stocks were propelled higher by what can only be called metal mania. Copper prices surged 10% to new record highs, silver hit $121 and gold attacked $5,600. Off the back of this rapid rise copper miner Antofagasta had led the charge on the blue chip index, with silver and gold plays Fresnillo and Endeavour Mining also chalking up sizeable gains on the day.
Oil majors Shell and BP also bounced nicely as crude oil prices surged 5% as fears about military intervention in Iran leading to disruption to oil supplies etc. But things are looking pretty messy out there regards metals markets.
US factory orders rose more than expected in November, new data shows.
New orders for manufactured goods increased by $16.2bn in November, a rise of 2.7%, to $621.6bn, beating forecasts of a 1.6% rise.
Oil up almost 5%
Oil futures are extending their gains.
Brent crude is now up almost 5% at $71.60 per barrel, the highest since 1 August 20205, amid rising concerns about a possible US military attack on Iran.
Over on Wall Street, Microsoft’s shares have opened with a bump after its latest results disappointed investors.
Microsoft reported slowing growth in its key cloud computing business last night, which has taken the shine off forecast-beating revenue and profits for the last quarter.
The company also reported an increase in capital expenditure, which puts the spotlight on the high costs of AI rollout.
As my colleague Ed Helmore reported:
Microsoft reported revenues of $81.27bn against expectations of $80.32bn, and improved from the 12.3% increase it recorded in the same quarter last year. Earnings came in at $4.14 per share against expectations of $3.92.
“We are only at the beginning phases of AI diffusion, and already Microsoft has built an AI business that is larger than some of our biggest franchises,” said the company’s CEO, Satya Nadella. “We are pushing the frontier across our entire AI stack to drive new value for our customers and partners.”
Investors are pushing Microsoft’s shares down, though – they’re off 10% at $433 in early trading, down from $481 last night.
They’re on track for their biggest one-day drop since March 2020, when the Covid-19 pandemic rocked the markets, Reuters reports.
This also knocks around $350bn off Microsoft’s valuation, as the company was worth around $3.58tn yesterday.
Updated
On Iran, PVM analyst John Evans says:
“The immediate (market) concern ... is the collateral damage done if Iran takes a swing at its neighbours or possibly even more tellingly, it closes the Strait of Hormuz to the 20 million barrels per day of oil that navigates it.”
Brent crude has now climbed above $71 per barrel, up 4% today, to its highest level since 1 August last year.
Gold producers are also among the top risers on the FTSE 100, points out Fiona Cincotta, senior market analyst at City Index.
“The FTSE is rising, outperforming its European peers, boosted by miners and oil majors, as rising commodity prices and higher earnings lift spirits.
With gold trading at fresh record highs of nearly 5,600, precious metal miners are outperforming. Endeavour trades over 5% higher, whilst Fresnillo is up 2.8%.
Gold has risen to record levels, driven by a weaker U.S. dollar, escalating geopolitical tensions, and erratic U.S. policy, which have spurred safe-haven flows.
Meanwhile, oil prices also jumped to 4-month highs as President Trump warned that time is running out for Iran to make a nuclear deal. Concerns that regional conflict could disrupt supply from OPEC’s fourth-largest member have lifted the risk premium on oil. Oil majors are tracking oil prices higher.
Corporate earnings have also come through thick and fast. Antofagasta is up over 6% after the mining giant reported a modest 1.6% decline in its copper production but maintained its 2026 outlook as copper futures reached $13,934 per metric tonne.
Meanwhile, EasyJet, the budget airline, was also flying 2.6% higher after reiterating full-year guidance.
Gains in the FTSE could be limited by the strength of the pound, which trades at multi-year highs above 1.38 on U.S. dollar weakness. A strong pound results in a less favourable exchange rate for multinationals, which account for 80% of the FTSE.”
FTSE 100 hits record high
Britain’s main stock market index has just hit a new record high, lifted by shares in oil companies and miners.
The FTSE 100 shares index has just touched a new peak of 12,259 points, two points above the previous record high hit nearly two weeks ago.
Copper producer Antofagasta is leading the charge; it’s up 11% today, as the copper prices has hit new record levels over $14,000/tonne (see earlier post), and after reporting a 9% increase in quarterly copper production earlier today.
The jump in the oil price today has lifted Shell (+2.1%) and BP (+1.9%); they’re among the larger companies on the Footsie, so are pushing the index higher.
Other mining stocks are also rallying, as AJ Bell investment director Russ Mould explained this morning:
“The FTSE 100 got off to a strong start as gold moved through $5,500 and oil ticked up amid mounting tensions between the US and Iran,
“The mining sector did much of the heavy lifting for the index, buoyed by a positive production update from Glencore and the impact of precious metals strength on Fresnillo and Endeavour. BP and Shell were lifted by a stronger crude oil price.
“Wall Street yesterday greeted the latest Federal Reserve decision with a shrug as interest rates were kept on hold – with much of the action coming after the market close as investors reacted to results from Tesla, Microsoft and Meta. Asian markets were more downbeat as the possibility of conflict in the Middle East was weighed up.”
Updated
More Americans filed new claims for unemployment benefit than expected last week, although levels remain low by historic standards.
There were 209,000 new ‘initial claims’ for jobless support, new data shows, ahead of forecasts of 205,000.
The previous week’s total has been revised higher, from 200,000 to 210,000.
The initial claims total is seen as a proxy for layoffs in the US economy, so this suggests American companies are continuing to hold onto workers.
Claims:
— Guy Berger (@EconBerger) January 29, 2026
1/ Initial claims a little higher at 209K (and last week revised up to 210K), but still really low - about year-ago levels and below 2024 levels, no signs of rising layoffs here. pic.twitter.com/iSeK1U8xYN
Gold and oil are both surging today as Donald Trump threatens Iran, reports Raffi Boyadjian, lead market analyst at Trading Point:
Trump’s latest focus is Iran, as the US is sending a “massive armada” to the region, with the President warning Tehran that “time is running out” to make a deal on abandoning its nuclear program. Trump posted on his Truth Social platform yesterday the fleet is “ready, willing, and able to rapidly fulfill its mission, with speed and violence”.
It’s unclear how long the White House is willing to wait for Tehran to come to the negotiating table and whether the US military has already made plans on how to carry out an attack on Iran, or if this is just all a bluff. His recent actions on Venezuela suggest otherwise.
Unsurprisingly, the safe-have gold is extending its record-setting streak today, hitting a new all-time high of just under $5,595/oz. Silver has also set a new record, reaching $120/oz. Other metals are also getting caught up in the speculative trade taking precious metals by storm, as copper futures are up 6% today.
AstraZeneca to invest $15bn in China through 2030
UK pharmaceuticals girm AstraZeneca has announced plans to invest $15bn in China by 2030, creating thousands of jobs.
The investment, announced during Keir Starmer’s visit to China, will expand AstraZeneca’s medicines manufacturing and research and development operations in the country.
Pascal Soriot, chief executive officer of AstraZeneca, says:
“Today’s landmark investment of $15 billion begins an exciting next chapter for AstraZeneca in China, which has become a critical contributor to scientific innovation, advanced manufacturing, and global public health.
By expanding our capabilities in breakthrough treatments like cell therapy and radioconjugates, we will strengthen our contribution to China’s high-quality development and, most importantly, bring next-generation modalities to patients.”
The move will expand AstraZeneca’s workforce in China beyond 20,000, up from over 17,000 today, and also create thousands of additional jobs across the healthcare ecosystem.
Starmer argues the investment will help the UK economy too, saying:
“Unlocking opportunities for British businesses across the globe and delivering for working people back home is always the driving force behind my international engagements. AstraZeneca’s expansion and leadership in China will help the British manufacturer continue to grow - supporting thousands of UK jobs.”
AstraZeneca’s operations in China haven’t been untroubled. In September 2024, Chinese police have detainen several current and former staff as part of an investigation into possible breaches related to data privacy and importing unlicensed medications.
Dow to cut 4,500 jobs and use AI to help streamline operations
Chemicals producer Dow has become the latest company to announce job losses, as it embraces AI.
Dow says it plans to cut about 4,500 jobs as it aims to simplify and streamline operation, using AI and automation to help.
The plan, dubbed “Transform to Outperform”, aims to increase earnings on an EBITDA basis by at least $2bn.
Chief executive officer Jim Fitterling says:
“This work will further accelerate measures we have already taken to address the prolonged trough and structural industry challenges.”
News of the plan comes as Dow also reports a 9% drop in net sales in the last quarter of 2025, due to a 2% drop in volumes plus lower prices.
Ireland in technical recession after GDP shrinks in Q4
Ireland’s gross domestic product shrank in the last three months of 2025, new data show.
Irish GDP fell by 0.6% in Q4 2025, mainly driven by a contraction in the multinational dominated Industry sector, the Central Statistics Office has reported.
That follows a 0.3% contraction in the third quarter of last year, putting Ireland into a technical recession (two negative quarters of GDP growth in a row).
However, that’s not the full picture.
For starters, GDP is a bad measure of Ireland’s economy as it’s distorted by the activity of multinational companies based in the Republic.
That was compounded by a surge of pharmaceutical exports to the US early last year as companies tried to beat Donald Trump’s tariffs, which led to weaker demand through the rest of 2025.
A better measure of the domestic economy is modified domestic demand (MDD); unfortunately we don’t seem to have a new reading for Q4 2025 yet.
Reuters says:
GDP is still used to calculate Ireland’s share of activity across the euro zone and Irish GDP was 15.8% higher for the first nine months of the year. MDD rose 4.1% over the same period.
The jump in tech stocks, banks and miners last year has helped Norway’s sovereign wealth fund swell its returns last year.
The Norwegian Government Pension Fund Global has reported a 19.3% return on its equity investments in 2025. This helped to lift the fund’s total value to 21,268 billion kroner (£1.6tn) on 31 December 2025.
Nicolai Tangen, CEO of Norges Bank Investment Management:
“The fund delivered very strong results in 2025. Stocks in technology, financials and basic materials stood out, making a significant contribution to the overall return.”
Brent crude hits $70/barrel
Brent crude oil has now hit $70 a barrel for the first time in four months, after president Trump yesterday warned Iran to make a nuclear deal or face military strikes.
That means the oil pricehas gained around 3% today, lifted by Middle East concerns and the weaker dollar.
As explained earlier, Trump declared that a huge US armada was moving quickly towards the country “with great power, enthusiasm and purpose”, as he urged Iran to quickly ‘Come to the Table’.
Fawad Razaqzada, market analyst at Forex.com, explains:
Rising geopolitical tensions around Iran, combined with a volatile US dollar, are keeping investors cautious. The dollar index has been sliding sharply and is on track for its worst month since last April, continuing a trend where the greenback has struggled to behave like a traditional safe haven.
Instead, investors have been favouring tangible assets such as precious metals. Gold and silver have both benefited from this shift, while oil prices have been supported by escalating tensions in the Middle East.
Brent crude hit $70 for the first time since September after US President Donald Trump warned Iran to strike a nuclear deal or face possible military action. Any escalation could threaten oil flows from a region that accounts for roughly a third of global supply. Traders are also pricing in the risk of Iranian retaliation, including potential disruption through the Strait of Hormuz — a key artery for global energy markets.
Updated
British housebuilder Crest Nicholson has warned of a “material uncertainty” over its position as a going concern after its profits came in below previous guidance amid a “subdued” housing market.
The Surrey-based company, which also confirmed it had closed a divisional office with the loss of 50 jobs, said it could breach its banking covenants as soon as April in a “severe but plausible” scenario.
Crest told investors it was in regular dialogue with lenders and maintained “good relationships” with them. It said it was confident it could secure an amendment to the covenants if necessary, but this was “not guaranteed and therefore this represents a material uncertainty related to going concern”.
The warning came alongside the housebuilder’s results for the year to the end of last October, with adjusted pre-tax profit rising by 31% to £26.5m, although that was below its previous guided range of £28-38m.
The company, which is focused on the south of England and the Midlands, said it completed 1,691 homes in the past financial year, at the lower end of its target range of 1,700 to 1,900.
Nevertheless, investors reacted positively, with shares in the company rising 6% in early trading on Thursday, although they have fallen about 18% in the past year.
Some of the weakness in the housing market came from uncertainty around the UK’s November budget, Crest said.
Its chief executive, Martyn Clark, said the results reflected a housing market that “remains subdued”, but noted there were some early signs of improvement.
“Interest rates are easing and inflation has moderated, which should gradually support affordability and consumer confidence,” he said.
Back in August 2024, rival Bellway walked away from a plan to buy Crest Nicholson
This month the housebuilder Taylor Wimpey also said demand remained “muted”, particularly among first-time buyers. Meanwhile Persimmon, another rival in the sector, said it was “not expecting any material improvement in market conditions this year” despite positive signs since Boxing Day and recent reductions in mortgage rates.
Crest, which has struggled in the past few years with cladding issues and other defects on its older books, last year launched its turnaround plan, Project Elevate.
Sam Cullen, an analyst at the broker Peel Hunt, said that while it had “been a tough few years” for Crest, there were “clear signs the business is in a much better shape”, pointing to £79m worth of land sales to help support its balance sheet.
Its weekly rate of open-market sales for each site was 0.51 for the year, compared with 0.48 in 2024.
The surge in the gold, silver and copper prices today is lifting the London stock market too.
Mining stocks are among the top risers on the FTSE 100 share index, with precious metals producer Endeavour Mining up 5.3%.
Copper producer Antofagasta are up 6.2%, with Anglo American 3.8% higher and Glencore up 3.1%.
This has helped to lift the FTSE 100 by 53 points, or 0.53%, to 10,208 points, towards its mid-January record high.
Victoria Scholar, head of investment at interactive investor, says,
“European markets have opened mostly higher with the FTSE 100 up over 0.5%. 3i Group shares have soared to the top of the index, up 13%, set for its biggest daily gain in 6 years thanks to a strong Q3 performance update.
Miners are towards the top of the FTSE 100 today thanks to record highs for copper, gold and silver. Fresnillo, Endeavour Mining, Antofagasta, Anglo American and Glencore are all enjoying gains.
US futures are pointing to a higher open as investors assess a mixed bag of tech earnings – Microsoft fell after-hours while Meta and Tesla staged gains. It comes after the S&P 500 temporarily hit the 7,000 milestone for the first time in yesterday’s session before closing off the highs. Focus turns to Apple’s results after the bell tonight.
Oil prices are trading back up at September highs, after a strong uptrend this week, with Brent and WTI both gaining around 1.5% today, pricing in the US-Iran uncertainty and fears of military escalation.”
Copper hits record high
The weak dollar has helped to drive the copper price to a record high today too.
The benchmark three-month copper on the London Metal Exchange jumped almost 8% to a new all-time peak of $14,125 a tonne, before slipping back slightly.
A wave of intense speculative trading in China is also lifting copper, Bloomberg reports, adding:
Investors are piling into base metals on the Shanghai Futures Exchange on expectations for stronger US growth and more spending on data centers, robotics and power infrastructure. That’s spurring global prices higher.
CHART OF THE DAY: Benchmark copper prices surge to a fresh all time high above $14,000 per metric ton. pic.twitter.com/GYaRydWpiZ
— Javier Blas (@JavierBlas) January 29, 2026
Sweden leaves interest rates on hold as uncertainty rises
Over in Sweden, central bank policymakers have decided to keep its key interest rate on hold.
The Riksbank has announced it will maintain rates at 1.75%.
It says:
Inflation is close to the target of 2 percent.
The Swedish economy is growing at a solid pace. The labour market is weak but showing signs of improvement.
The Riksbank adds that the rate is expected to remain at this level for some time to come. But it also cautions that the uncertainty regarding the outlook for inflation and economic activity has increased.
Another blow to Ocado as Canadian partner shuts distribution centre
Shares in Ocado have dropped almost 10% this morning after its robotic warehouse rollout suffered another blow.
Sobeys, the canadian grocery chain, has decided to close its customer fulfilment centre in Calgary, Ocado told shareholders this morning.
It says the decision is largely due to the Alberta grocery e-commerce market’s size and the rate of expansion being slower than originally anticipated.
Ocado expects to receive compensation of £18m for the closure of the CFC in Alberta, which will cut its fee revenue by £7m this financial year.
Sobeys is sticking with Ocado at two other warehouses, in Toronto and Montreal, where the UK company is deploying new technology to enable a higher proportion of same day and short-lead time orders to be served from CFCs.
The Alberta closure comes just a few months after Ocado’s US partner, Kroger, announced the closure of three warehouses using the UK company’s high-tech equipment.
Spanish bank Santander has today announced plans to close 44 UK banch branches, putting almost 300 jobs at risk.
Santander UK blames “changing customer behaviour”, as 96% of all transactions now being completed in digital channels. It plans to replace these branches with Community Bankers, operating either from a Santander Local or a Banking Hub.
Most of the branches will close later this year, although some are earmarked to keep running until early next year:
Andover 12-May-26
Banbridge 19-May-26
Bangor 29-Apr-26
Berwick Upon Tweed 28-Apr-26
Bishop Auckland 05-May-26
Boston 28-Apr-26
Bridgend 12-May-26
Bridgwater 29-Apr-26
Cwmbran 13-May-26
Enniskillen 12-May-26
Evesham 28-Apr-26
Glengormley 06-May-26
Golders Green 13-May-26
Gosport 05-May-26
Haverfordwest 05-May-26
Heswall 13-May-26
Huntingdon 05-May-26
Kirkintilloch 29-Apr-26
Leighton Buzzard By the end of January 2027
Leyland 06-May-26
Liskeard 20-May-26
Macclesfield 12-May-26
Mansfield 06-May-26
Melton Mowbray 29-Apr-26
Merthyr Tydfil 06-May-26
Mold 28-Apr-26
Newbury 29-Apr-26
Newton Abbot 19-May-26
Northallerton 06-May-26
Ormskirk By the end of January 2027
Pontefract 05-May-26
Ramsgate 28-Apr-26
Redditch 13-May-26
Ringwood 06-May-26
Scunthorpe 29-Apr-26
Shirley 20-May-26
Stafford 19-May-26
Stranraer 13-May-26
Stratford Upon Avon 12-May-26
Tonbridge 29-Apr-26
Welwyn Garden City 05-May-26
Whitehaven By the end of January 2027
Wilmslow By the end of January 2027
Woking 28-Apr-26
A spokesperson for Santander UK said:
“In response to a continuing and sizeable shift towards customers using digital banking, we are making changes to our branches to better support our customers.
We will continue to invest in both our branch network - comprising of full-service branches, counter-free branches, reduced-hour branches, Santander Locals, and our increasingly popular Work Cafés – as well as our digital banking services, so we can be there to support our customers however they choose to bank with us.”
Weaker dollar 'here to stay'
The US dollar is wallowing near its lowest level in four years today.
On Tuesday it tumbled to its weakest point since February 2022, after Donald Trump declared that the dollar is “doing great”, when asked about its weakness.
Kathleen Brooks, research director at XTB, argues that the weaker dollar is here to stay, telling clients:
The dollar has been under pressure for most of this year and is the weakest currency in the G10 FX space. The recent bout of FX market volatility in recent days that started with the yen, is a further sign that we are entering an unusual period of uncertainty for the FX market. This could lead to structural changes, and it could affect investor behavior.
Oil hits four-month high amid Iran tensions
The oil price is rising again today on increasing concerns the US may carry out a military attack on Iran, a key Middle Eastern producer.
Brent crude is up 1.3% at $69.33 a barrel, its highest since late September, after president Trump warned Tehran yesterday that time was running out.
Trump declared that a huge US armada was moving quickly towards the country “with great power, enthusiasm and purpose”, as he urged Iran to quickly ‘Come to the Table’.
January’s sizzling gains follow a strong 2025 for gold.
Gold gained 65% last year, as investors sought out protection from inflation and geopolitical tensions (a trend that has accelerated since!).
And this morning, the World Gold Council has reported that gold demand hit an all-time high last year.
The WGC says global gold demand rose by 1% in 2025 to 5,002 metric tons, which it attributes to jitters over instability and trade.
John Reade, senior market strategist at the World Gold Council, adds:
“The biggest question this year will be whether investment demand is going to be strong enough to maintain the strength of the gold market.”
The WGC also reported that central banks’ purchases of gold fell by 20% last year.
Reade says:
“The highlight is definitely investment demand. The lowlight — the one people may be surprised about — is that central bank demand dropped.”
Silver hits $120/oz
Silver has climbed even faster than gold this year.
Silver is up a blistering 65% since the start of January, and hit $120 an ounce for the first time this morning.
Some speculators are turning to silver as they try to cash in on the precious metals boom.
The Straits Times reports that some Hong Kong residents trying to buy a bar of silver were disappointed:
After a precious metals shop in Hong Kong’s central business district announced that hundreds of silver bars had sold out for the day on Jan 28, murmurs of disappointment rippled through a waiting queue.
Despite increasing its supply to cater to strong demand, the store saw hundreds of bars snapped up in just over an hour.
The rise in precious metals prices is “breathtaking and profoundly scary”, warns Robin Brooks, senior fellow at Brookings Institute.
He writes:
The rise in gold is part of something much bigger… all precious metals prices are going through the roof and gold is a laggard compared to silver and platinum.
At the same time, we’re seeing government bond markets in high-debt countries like Japan under severe pressure, even as there’s a flight to safety into countries with low debt like Sweden, Norway and Switzerland. Gold is therefore a symptom of something much bigger. We’re at the start of a global debt crisis, with markets increasingly fearful governments will attempt to inflate away out-of-control debt. Gold is just one of many assets that are getting a “safe haven” bid as part of this phenomenon.
Dollar weakness is supercharging the rise in gold. It was only on Sunday night that we went above $5,000 and today we're already above $5,200. Dollar weakness is adding fuel to the fire for the crazy rise in precious metals...https://t.co/u358ES9y2d pic.twitter.com/jzQ3c7vqCk
— Robin Brooks (@robin_j_brooks) January 28, 2026
Introduction: Weak dollar drives gold over $5,500 an ounce
Good morning and welcome to our rolling coverage of business, the financial markets and the world economy.
The surge in the gold price is showing no sign of abating, as bullion continues to soar.
Gold has jumped over the $5,500 an ounce level this morning, just three days after hitting $5,000 for the first time, taking its gains so far this year to almost 30% (!).
It powered higher as investors continue to rush into safe haven assets, looking for protection against geopolitical and economic uncertainty.
Precious metals are also benefiting from the weaker dollar, which has lurched lower after president Trump indicated this week he was comfortable with the currency’s year‑to‑date softness. That only encouraged fears of monetary debasement, boosting gold’s attractiveness.
As Chris Beauchamp, Chief Market Analyst at IG, explains:
“That sound you hear is that of 2026 gold targets being furiously revised higher, as the price keeps climbing, and given renewed impetus by Trump’s comments on the dollar. This will have fans of the debasement trade cheering in their seats, as it reinforces their thesis.
Each time precious seem at risk of running out of bullish momentum, something comes along to rescue it. So long as international investors keep dumping the dollar, the future for gold looks bright indeed.”
Concerns around the independence of America’s central bank are also lifting gold.
Although the US Federal Reserve resisted pressure from Trump and held interest rates last night, it may cut rates once a new chair has been installed to replace Jerome Powell later this year. That could weaken the dollar further, and lift inflation – two conditions which are good for the gold price.
The agenda
10am GMT: Eurozone consumer/business confidence report
1.30pm GMT: US trade report for November
1.30pm GMT: US initial jobless claims report
3pm GMT: US factory orders data for November
