"London's blue-chip index finished up 118.02 points, or 1.15 per cent, at 10,341.56, reversing an early European sell-off and setting a new closing peak. Traders bet that the dollar's recent rally would boost earnings prospects for UK-listed multinationals, around three-quarters of which generate revenues in dollars. The session was marked by heavy volatility across asset classes: Gold prices fell a further 1.9 per cent to $4,648.76 an ounce, their lowest closing level since mid-January and more than 13 per cent below last week's record high."
"The renewed pressure on precious metals began late last week after Trump named Kevin Warsh as his preferred successor to Jerome Powell as chair of the Federal Reserve, when Powell's term ends in May. Warsh is seen by markets as more likely to resist political pressure to slash interest rates aggressively, easing concerns over the long-term credibility of US monetary policy and denting demand for traditional safe-haven assets such as gold."
FTSE 100 closed at a record 10,341.56, up 118.02 points (1.15%), reversing an early European sell-off as a stronger US dollar boosted earnings prospects for UK-listed multinationals that generate around three-quarters of revenues in dollars. The session featured heavy volatility across asset classes. Gold fell 1.9% to $4,648.76 an ounce, its lowest close since mid-January and more than 13% below last week's record. Silver slid 1.9% to $76.78 an ounce, down over a third from its recent peak. Brent crude plunged 4.4% to $66.08 a barrel after signals of eased US-Iran tensions. Bitcoin rose 1.8% to $78,282 but remained more than 30% below its October intraday high. Markets reacted to Donald Trump naming Kevin Warsh as his preferred successor to Jerome Powell, and analysts at Jefferies said the longer-term backdrop still favours commodities.
Read at Business Matters
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