FTSE 100 Hits Record High as Gold Rally Resumes and GBP/USD Pauses
The FTSE 100 climbed to an all-time high near 9,900, with momentum pointing toward 10,000 as traders eye further gains. Sterling eased from recent highs after encountering resistance near $1.3190, while gold resumed its advance above $4,100 per ounce amid renewed hopes for Fed rate cuts and an end to the US government shutdown.
Macro update
US relief rally:
Wall Street extended gains after the Senate approved a deal to end the record-long government shutdown, with both the Nasdaq 100 and gold posting their strongest advances in months.
Rate-cut expectations grow:
Investors anticipate that the resumption of US economic data releases will bolster the case for Federal Reserve (Fed) rate cuts, supporting the ongoing rally in risk assets.
Asia tracks Wall Street higher:
Regional markets advanced, led by Singapore’s Straits Times Index hitting an all-time high and South Korea’s KOSPI approaching record territory.
Japan earnings momentum:
Sony raised its profit outlook on robust semiconductor and music revenue, while SoftBank is set to report results amid continued enthusiasm for artificial intelligence (AI)-linked investments.
Currencies and commodities:
The Japanese yen slid to a nine-month low as risk appetite improved, while gold extended its rebound on rising expectations of forthcoming US rate cuts.
FTSE 100 trades in record highs
On Monday the FTSE 100 rallied to a new record high at 9,898, a level which may be surpassed this week with the 10,000 region being in focus.
Immediate bullish momentum should remain in play while Friday's low at 9,639 underpins.
FTSE 100 daily candlestick chart
GBP/USD retraces slightly
Last week's swift GBP/USD bounce has encountered resistance at Monday's $1.3191 high with the late October low at $1.3097 possibly being revisited.
While no fall through last week's low at $1.3010 is seen, though, another attempt at reaching the 200-day simple moving average (SMA) at $1.3269 remains on the cards.
GBP/USD daily candlestick chart
Gold rally has resumed
The gold price has resumed its ascent amid hopes of an end to the longest US government shutdown and resurfaced Fed rate cut expectations.
The $4,150.00 per troy ounce region may offer minor resistance but, if overcome, the mid-October low at $4,185.91 may be reached as well.
Support now sits between the 22 October low and the 31 October high at $4,046.60-to-$4,004.28.
Gold daily candlestick chart
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