Gold price hits new record while GBP/USD rises and FTSE 100 stalls
Technical analysis of the gold price as it trades in new record highs while GBP/USD rises and the FTSE 100 stalls.
Macro update
Asian and global stocks rally on tech strength:
Asian equity markets advanced sharply on Monday, led by technology and AI-related shares, as they built on strong momentum from US markets at the end of last week.
Japanese yen weakens despite rate rise:
The Bank of Japan (BoJ) raised interest rates to their highest level in 30 years, yet the Japanese yen slid toward annual lows, providing support for export-focused equities.
UK sentiment underpinned by BoE easing backdrop:
Following recent UK rate cuts and softer inflation data, market positioning continues to reflect expectations of further monetary easing in 2026.
Foreign buyers drive UK M&A momentum:
Overseas acquirers have shown robust appetite for UK assets, pushing total deal values to multi-year highs despite a decline in domestically driven transactions.
Stock futures point to positive open:
US equity futures moved higher ahead of a holiday-shortened trading week, signalling sustained optimism among investors.
Commodities rally:
Oil prices edged higher while precious metals advanced, with both gold and silver reaching fresh record highs.
FTSE 100 loses upside momentum
The FTSE 100 is beginning to lose upside momentum below the 9,900 mark and last week's 9,913 high.
As long as this area caps, the 17 December high at 9,853 may be revisited. Below it the late October high at 9,788 may offer support.
A rise above last week's 9,913 high would likely engage the November record high at 9,928 and then aim for the psychological 10,000 mark.
Short-term outlook: bullish while above the 10 December low at 9,608
Medium-term outlook: bullish while above the 9,423 November low
FTSE 100 daily candlestick chart
GBP/USD again pushes higher
GBP/USD's November-to-December rise seems to have temporarily run out of steam at last week's $1.3456 high with it sideways trading in high volatility since then.
The 200-day simple moving average (SMA) at $1.3352 offer support, though, with upward momentum being once more on the cards.
A rise above the $1.3456 current December high may engage the mid-October peak at $1.3471 end then the $1.3500 region.
Short-term outlook: bullish while above $1.3312
Medium-term outlook: bullish while above the 9 December low at $1.3288
GBP/USD daily candlestick chart
Gold price hits new record high
The gold price has overcome its $4,381.44 October record high, opening the way for the $4,500.00 region to be hit.
Minor support sits between the 12-to-18 December highs at $4,374.66-to-$4,353.56.
Short-term outlook: bullish while above $4,271.58
Medium-term outlook: bullish, eyes the $4,500 region while remaining above the 9 December low at $4,169.99
Gold daily candlestick chart
Important to know
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Connect with us
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% 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.
