Gold higher, supporting FTSE 100 miners
Gold has put stocks in the shade with a fresh surge for the metal, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.
FTSE 100 supported by precious metals strength
New highs for gold and silver have bolstered mining stocks in London, helping the FTSE 100 to hold its ground as markets take stock of last week’s rate cut in the US. While volatility has ticked up from last week’s lows, there is as yet no sign of any further spike in the VIX, despite being in a traditionally strong period for the ‘fear index’. Hopes of more rate cuts seem likely to support further advances in stocks in the medium term, though they do look at risk of some choppiness given the lighter calendar this week.
Gold and silver surge on rate cut hopes
This week’s parade of Fed speakers is expected to reinforce the expectation of further rate cuts, but gold is getting its move in now, rallying to a new high. Stocks may be looking at little weary at these levels after a very solid first half of September, but the breakout from gold’s trading range of April – August seems to have further to run.
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