FTSE 100 hits new record high while GBP/USD, gold weaken
The FTSE 100 reached fresh record highs with more gains in sight, while GBP/USD and gold near support levels.
Investors remained on edge as Wall Street closed lower ahead of Federal Reserve (Fed) Chair Jerome Powell’s anticipated remarks at the Jackson Hole symposium.
Market sentiment shifted notably, with the likelihood of a September rate cut falling to 79%, down from nearly 100% just a week prior. Powell faces a challenging task: striking the right balance between offering dovish reassurance and acknowledging persistent inflation.
The Fed is navigating a complex environment marked by softening labour market data, stubborn price pressures, and mounting political scrutiny from President Trump.
Meanwhile, the tech sector continued to show weakness despite a slowdown in the recent selloff. Major players like Nvidia, Meta, Amazon, and AMD extended their losses, as investors grew increasingly cautious about elevated valuations and the prospect of tighter regulatory oversight.
Stronger yields added further weight to equities, intensifying the already cautious market mood.
FTSE 100 trades in record highs
The FTSE 100 has made yet another record high at 9,315 on Thursday's with further upside expected on Friday morning. The next potential upside target is a 161.8% Fibonacci extension at 9,374.
Potential slips may find support around Thursday's 9,256 low and at the 15 August 9,228 high.
FTSE 100 daily candlestick chart
GBP/USD remains under pressure
GBP/USD's decline from its $1.3595 mid-August high has taken the cross towards the June-to-mid-July lows at $1.3371-to-$1.3365 which are expected to offer support. If not, a much deeper decline towards the $1.3300 region may be at hand.
Minor resistance above the late April high and the late May low at $1.3416-to-$1.3444 lies around the 10 June low at $1.3457.
GBP/USD daily candlestick chart
Gold price stays sidelined
The price of gold has been oscillating around the 55-day simple moving average (SMA) at $3,347.65 for the past week or so.
It is currently sliding towards its May-to-August support line at $3,315.00 which, together with the $3,311.56 may offer support.
If not, and if the $3,309.79 mid-July low were to give way, the 9 and 24 June lows at $3,295.32-to-$3,293.50 may be revisited.
For a bullish range breakout to be seen, a rise and daily chart close would need to be made above the 21 August high at $3,352.30.
Gold daily candlestick chart
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