More highs for precious metals but FTSE 100 drifts

Chris Beauchamp IG

The FTSE 100 has lagged the CAC40 for a second day, while gold and silver seem absolutely unstoppable, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

FTSE 100 drifts lower

Whitbread’s share price might have been trimmed by a brutal 10%, but that has taken only 2 points off the FTSE 100. It is no coincidence that the index has struggled just as the pound stages a recovery from recent lows – the IMF’s relatively rosy outlook for UK growth seems to have inspired the buyers to move back to the pound, though once again the CAC40 has stolen the show as it rallies thanks to the survival of the French government.

Precious metals march to new highs

Gold seems set to clock a record fifth consecutive closing high, defying all expectations of a pullback. The move has catapulted gold to global fame, and if the queues seen in many cities are any indication, then the recent move seems set to continue. Silver’s move is poised to become even more dramatic, thanks to the lower liquidity on offer.

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Chris Beauchamp

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