The price of gold today fell back as traders focused on President Trump’s nomination as next Federal Reserve chair.
Kevin Warsh, a former Fed governor, is seen as the likely choice ahead of today’s announcement.
Gold and silver prices fell sharply but bullion is still 20% higher during January after topping $5000 an ounce for the first time on Monday.
FTSE 100 Live Friday
- Astra obesity drug tie-up
- Trump to name Fed choice
- Apple iPhone sales boost
Market update: Gold and silver prices slide, Lloyds run continues
09:28 , Graeme EvansSharply lower gold and silver prices today triggered a flight from the mining sector but failed to stop the FTSE 100 index from gaining ground.
The reverse for safe haven metals followed speculation that President Trump intends to nominate Kevin Warsh as the next chair of the Federal Reserve.
The former Fed governor’s record points to a dovish stance on interest rates alongside a desire to slim down the central bank’s balance sheet.
UBS Global Wealth Management said: “We do not expect significant changes to the current easing cycle in the near term, and keep our forecast for one rate cut this year.”
Dan Coatsworth, AJ Bell head of markets, added: “Investors seem to be taking this as a positive sign in terms of Fed independence – with Warsh perceived as a more orthodox choice versus some of the other mooted names.”
Pressure on the US dollar eased ahead of the announcement later today, while gold fell 7% to $5060 an ounce and silver slumped by 12%. Bullion is still about 20% higher so far this year, having surged as far as $5600 yesterday morning.
The developments meant Endeavour Mining lost 6% or 268p to 4250p, Fresnillo 5% or 196p to 3704p and Antofagasta retreated 156p to 3630p.
The diversified miners also came under pressure as Glencore fell 2% or 11.5p from last night’s three-year high at 495.95p and Anglo American dropped 84p to 3416p.
BP shares fell 3.5p to 459.15p and Shell dipped 16p to 2781.5p after the recovery for Brent Crude stalled with a price decline of 0.9% to $68.99 a barrel.
The FTSE 100 index rose 24.96 points to 10,196.72, led by financial data firm Experian after it announced a $1 billion share buyback programme. The shares put back recent losses by lifting 4% or 102p to 2797p.
Lloyds Banking Group received a post-results boost of 2.5p to a fresh multi-year high of 107.95p, while Diageo and British Airways owner IAG also improved 2%.
Octopus Energy strikes China renewables deal
08:42 , Graeme EvansOctopus Energy has expanded into China for the first time after launching a joint venture with the country’s PCG Power.
The move by Octopus will allow it to trade renewable energy across the world’s largest clean energy market.
The UK’s largest energy supplier announced the strategic partnership amid Prime Minister Sir Keir Starmer’s visit to China, designed to improve economic ties between the countries.
Miners lower in mixed FTSE 100 session, Experian up 2%
08:38 , Graeme EvansThe FTSE 100 index has fallen 13.25 points to 10,158.51, with Antofagasta and Endeavour Mining down by 4% following a retreat for metal prices.
AstraZeneca dropped 16p at 13,444p, having announced a major obesity drug deal with China’s CSPC Pharmaceuticals.
Lloyds Banking Group rose 1.3p to 106.75p following yesterday's annual results, while Barclays lifted 5.7p to 485.3p.
Experian shares improved 2% or 56p to 2751p after the financial data firm announced a $1 billion share buyback programme.
Apple forecast-beating growth fails to lift shares
07:51 , Graeme EvansApple last night exceeded Wall Street expectations after quarterly revenues hit $143.8 billion and it gave upbeat growth guidance for the current quarter.
Strong sales of the new iPhone 17 and a rebound in China boosted the performance.
However, rising costs and questions over the company’s AI progress meant shares were only slightly higher in dealings after the closing bell.
Hargreaves Lansdown analyst Matt Britzman said: “Apple delivered a standout iPhone quarter, but investors came away wanting more - specifically, a clearer AI story.”
He said markets were expecting a good quarter for the iPhone, but weren’t expecting to see China firmly back in the mix as a major source of strength.
Britzman added: “What’s really keeping a lid on things is Apple’s slow progress in AI, a gap that now feels pivotal to close. Investors are looking for practical, AI-powered products that genuinely move the needle - something Apple Intelligence hasn’t delivered.”
Trump set to name new Federal Reserve chair
07:34 , Graeme EvansGold’s price retreat comes amid speculation that President Trump intends to nominate Kevin Warsh as the next chair of the Federal Reserve.
An announcement is expected later today.
Warsh is a former Fed Governor who served between 2006 and 2011, a period that included the response to the global financial crisis.
Susannah Streeter, Wealth Club’s chief investment strategist, said: “He’s a former Fed governor, and while he did have a reputation as being an advocate of tighter monetary policy, earning the ‘hawk’ moniker, he’s recently been publicly advocating for a fresh cut in interest rates, aligned with Trump’s thinking.
“However, his experience and past attitude imply he’s likely to hold the line if sharp inflationary pressures return.”
Deutsche Bank added: “While his recent comments have been supportive of lower rates, in the past he’s been hawkishly critical of the Fed’s expansive use of its balance sheet.”
AstraZeneca boosts weight loss drug portfolio
07:22 , Graeme EvansAstraZeneca today said it had boosted its weight management portfolio through a strategic collaboration agreement with China’s CSPC Pharmaceuticals.
The companies plan to advance the development of multiple next-generation therapies for obesity and type 2 diabetes across eight programmes.
They will initially progress four programmes, which utilise CSPC's AI-driven peptide drug discovery platform and LiquidGel once-monthly dosing platform technology.
AstraZeneca will receive exclusive global rights outside of China to CSPC's once-monthly injectable weight management portfolio.
CSPC will receive an upfront payment of $1.2 billion from AstraZeneca and is also eligible to receive development and regulatory milestones of up to $3.5 billion across all programmes.
Astra executive vice president Sharon Barr said: “This is an important step in creating a portfolio of simple, scalable and sustainable options that can help people with obesity, and weight-related complications live better, healthier lives."
Gold price falls, Microsoft shares down 10% in mixed US session
07:02 , Graeme EvansGold, silver and copper prices have fallen sharply after they set record highs earlier this week.
Gold is down 5% at $5166 an ounce, which compares with near to $5600 in dealings early yesterday. It is still up by 20% this month, which would be the strongest performance in more than four decades.
Brent Crude has fallen 1.8% to $68.32 a barrel.
On Wall Street, the Nasdaq Composite fell 0.7% while the Dow Jones Industrial Average rose 0.1% and the S&P 500 index dropped 0.1%.
Meta Platforms jumped 10% following Wednesday night’s results but Microsoft lost 10% of its value and Tesla also weakened on quarterly figures.
Apple shares were slightly higher in dealings after last night’s closing bell, having earlier beaten Wall Street estimates for quarterly revenues.
The FTSE 100 index rose 0.2% to 17.33 points to 10,171.76 in yesterday’s session and is forecast to open broadly unchanged at today’s opening bell.
