Gold hits fresh record over $3700, lifting mining stocks

Gold climbed to a record $3,712 per ounce early on Monday before easing slightly to $3,709 as traders awaited comments from several Federal Reserve officials after last week’s US rate cut. The dollar stayed firm at 97.78, with sterling down to $1.345 and the yen at 148.3, while Brent crude rose to $67.07 a barrel on tensions in Europe and the Middle East alongside rising Iraqi exports. US equities closed Friday at record highs, with Apple up 3.2% and FedEx gaining 2.3%, while London’s FTSE 100 slipped 0.12% and Spire Healthcare jumped 14.1% on sale talks.

Equities

London’s FTSE 100 closed 0.12% lower on Friday, giving up ground at the end of a busy week as concerns over government borrowing and inflation weighed on sentiment. The mid-cap FTSE 250 slipped 0.63%. Media names were weak, with WPP falling 5.2% after sector selling pressure.

Precious-metal miners added strength: Fresnillo rose 5.2%, Hochschild Mining gained 4.7% and Endeavour Mining advanced 4.5% as gold prices moved higher. Shares in IG Group declined 2.9% on Friday after it said it would buy Australian cryptocurrency platform Independent Reserve for A$178 million (£93 million). Spire Healthcare jumped 14.1% the same day as the private hospital operator said it was considering strategic options, including a potential sale.

On Wall Street, all three main indices ended Friday at record closing highs for a second session running. The Dow Jones Industrial Average added 0.37% to finish at 46,315.27, the S&P 500 climbed 0.49% to 6,664.36 and the Nasdaq Composite rose 0.72% to 22,631.48. Trading volume reached 27.78 billion shares, the highest since April.

FedEx advanced 2.3% after Thursday’s results beat forecasts on profit and revenue, helped by domestic deliveries and cost savings. Apple gained 3.2% on Friday after JPMorgan raised its price target. Technology shares broadly improved, with Palantir Technologies and Oracle both moving higher and helping lift the S&P 500 technology sector by 1.19%.

Homebuilder Lennar slipped 4.2% on Friday after posting lower third-quarter earnings and projecting fourth-quarter deliveries below estimates. Paramount Skydance rose 5.9% as CNBC reported fresh details on its potential bid for Warner Bros Discovery, whose shares climbed 3.4% later in the session. The small-cap Russell 2000 retreated 0.71% on Friday after touching an intraday record, having closed at an all-time high the previous day.

Forex & Commodities

The dollar held firm as traders awaited speeches from a series of Federal Reserve officials following last week’s interest-rate cut. The dollar index edged higher to 97.78 in early Asia trade.

Sterling slipped to a two-week low of $1.345, weighed by concern over public borrowing and the Bank of England’s decision to hold rates after an earlier reduction. The euro traded at $1.173, slightly lower on the day, while the yen eased to 148.3 per dollar, giving back part of Friday’s advance after the Bank of Japan hinted at the prospect of a rate rise.

The Australian dollar inched up to $0.6595 after positive comments from a senior central banker. China’s yuan strengthened to 7.114 against the dollar after Beijing left its benchmark lending rates unchanged.

Spot gold was higher by mid-morning, having touched a record high of $3,712 earlier in the session. The metal’s gains followed last week’s 25-basis-point Fed cut and came ahead of a speech later on Monday from new Fed Governor Stephen Miran, who had argued for a larger reduction at September’s meeting. Investors are also watching the US core PCE price index, due on Friday, for further signals on inflation.

Oil prices moved higher in Asian trade. Brent crude was up at $67.07 a barrel by early morning, while US West Texas Intermediate for October delivery stood at $63.02. Tensions in Europe and the Middle East supported prices, while Iraq’s oil marketer SOMO reported exports averaging 3.38 million barrels per day in August, with September expected to reach up to 3.45 million.