English
FTSE 100 sidelined while GBP/USD, gold price rise amid tariff uncertainty
FTSE 100 sidelined while GBP/USD, gold price rise amid risk off sentiment due to US tariff uncertainty following President Trump’s threat of doubling steel tariffs to 50% starting 4 June.
FTSE 100 trades in near 3-month highs
The FTSE 100 remains sidelined below its May high at 8,823 and last week's 8,695 low. Further low volatility range trading seems to be at hand.
A rise above last week's 8,823 high would likely engage the February peak at 8,835 and the March all-time high at 8,909.
A slip through Thursday's 8,695 low would eye the 6 May high at 8,684 ahead of the 23 May low at 8,602.
Immediate support can be spotted at Friday's 8,724 low.
GBP/USD resumes its ascent
GBP/USD's recent short-term consolidation phase may have ended at last week's $1.3416 low with the May peak at $1.3593 remaining in sight while this support level underpins.
Below it the April-to-May uptrend line at $1.3407 may offer potential support, together with the 6 May high at $1.3403
Gold price heads back up again
The spot gold price has been range trading these past few days but is seen recovering from last week's low at $3,246.00 per troy ounce low towards its 23 May high at $3,366.00 which remains in focus while last week's low holds.
For a bullish reversal to be confirmed, the $3,246 high will need to be exceeded on a daily chart closing basis. In this case the early May peak at $3,435.00 would be next in line, followed by the April record high at $3,500.00.
A currently unexpected bearish reversal and fall through the $3,246.00 recent low may put the 55-day simple moving average (SMA) at $3,216.00 and the 1 May low at $3,202.00 back on the cards.
Only a fall through the $3,216.00-to-$3,202.00 support zone would put the early April high at $3,167.00 back on the map, ahead of the May low at $3,121.00. While it holds, the medium-term uptrend stays intact.
Connect with us
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Professional clients trading spread bets and CFDs can lose more than they deposit.
Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage. They’re not suitable for most investors. Before you invest, you should consider whether you understand how options and futures work, the risks of trading these instruments and whether you can afford to lose more than your original investment.
Trading stocks and shares ‘on margin’ within a US options and futures account – meaning that you only finance part of the cost of acquiring a position in a security – carries additional risks over buying securities on a fully funded basis and may result in losses exceeding your original investment. Trading on margin will also result in additional costs to you as the investor and any securities purchased using margin may be held as collateral by the lender, restricting both your rights as shareholder, and your ability to use the securities until the margin trade is closed. You should familiarise yourself with these risks before trading on margin.
The value of shares, ETFs and other ETPs bought through a share dealing account, a US options and futures account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results. Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing.
Share dealing and IG Smart Portfolio accounts provided by IG Trading and Investments Ltd, CFD accounts and US options and futures accounts are provided by IG Markets Ltd, spread betting provided by IG Index Ltd.
IG is a trading name of IG Trading and Investments Ltd (a company registered in England and Wales under number 11628764), IG Markets Ltd (a company registered in England and Wales under number 04008957) and IG Index Ltd (a company registered in England and Wales under number 01190902). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Trading and Investments Ltd (Register Number 944492) and IG Index Ltd (Register number 114059) are authorised and regulated by the Financial Conduct Authority.
The information on this site isn’t directed at residents of the United States, Belgium or any particular country outside the UK and isn’t intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
