Gold Hits Record $4,078 as Dollar Slips After Trump Shift

Gold rose to a record $4,078 per ounce early on Monday as the dollar weakened to 98.91 after President Trump softened his stance on trade with China. Brent crude rebounded to $63.65 a barrel following Friday’s losses, while US stock futures recovered, with S&P 500 futures up 1.3% and Nasdaq futures 1.8%. The euro held steady at $1.1622, the yen traded at 151.89 per dollar, and sterling edged up to $1.3347 as investors awaited comments from central bankers later in the day.

Equities

The FTSE 100 fell 0.9% to close at 9,427.47 on Friday, retreating from record highs earlier in the week as renewed trade tensions between the United States and China unsettled markets. The decline pushed the blue-chip index 0.67% lower for the week, reversing recent gains built on hopes of easier US monetary policy. The FTSE 250 also lost ground, down 1.14% on Friday and 1.8% across the week.

Energy stocks led the decline after oil prices dropped to multi-month lows. Shell fell 2.9% and BP was down 2.8%, both acting as major drags on the index.

Aerospace and defence companies also slipped. Rolls-Royce dropped 1.4%, while BAE Systems declined 1.6% and Melrose Industries fell 2.6%. Investors turned cautious amid fears that a prolonged trade dispute could disrupt supply chains in advanced manufacturing sectors.

Mining and metals shares weakened after recent strength. Endeavour Mining and Glencore both fell as investors locked in profits following earlier rallies. Precious and industrial metals producers lost around 2%, tracking lower prices for gold and copper.

Construction-related stocks were hit after Ibstock issued a profit warning. The bricks and concrete maker said on Friday that its annual profit would fall below market expectations, citing softer demand in the building sector. The stock fell 4%, reaching its lowest level in more than nine years.

Consumer staples and beverage companies rose modestly, with personal care, drug and grocery firms gaining about 0.9% as investors favoured steady cash-generating businesses.

In the United States, Wall Street tumbled on Friday after President Donald Trump announced a sweeping escalation in tariffs on Chinese imports. The Dow Jones Industrial Average dropped 1.9% to 45,479.60, while the S&P 500 fell 2.7% to 6,552.51. The Nasdaq Composite lost 3.6% to 22,204.43, marking its steepest single-day fall since April.

Technology shares were at the centre of the sell-off. Nvidia, Tesla, Amazon and Advanced Micro Devices each dropped more than 2% in after-hours trading, extending earlier declines. Semiconductor stocks were hit particularly hard, with the Philadelphia Semiconductor Index down 6.3%.

Qualcomm fell 7.3% after China’s market regulator said it had opened an antitrust investigation into the company’s planned acquisition of Israeli automotive technology firm Autotalks. The move raised concerns about regulatory headwinds for major chipmakers already grappling with export restrictions.

US-listed Chinese technology companies also came under pressure. Alibaba, JD.com and PDD Holdings each lost between 5.3% and 8.5% as investors reacted to rising tensions between Washington and Beijing.

Forex & Commodities

The US dollar slipped as traders reacted to President Donald Trump’s softer tone on trade with China. The dollar index was last down at 98.91 after a brief rebound on Friday, when the president announced plans for 100% tariffs on Chinese imports. Late on Sunday, he told followers on Truth Social that “it will all be fine” and that the United States “wants to help China, not hurt it.” The euro was steady in Asian trading at $1.1622 after the French presidency confirmed Prime Minister Sebastien Lecornu’s new cabinet, reappointing Roland Lescure as finance minister. Against the yen, the dollar traded higher at 151.89 as markets assessed the future of Japan’s ruling coalition after Komeito withdrew its support for the Liberal Democratic Party on Friday. Sterling rose slightly to $1.3347.

In commodities, gold rose to a record high early on Monday at $4,078 per ounce, lifted by safe-haven demand and expectations of interest rate cuts by the US Federal Reserve. Silver also reached an all-time high of $51.70 per ounce. Platinum was up at $1,635 per ounce and palladium at $1,452.

Oil prices recovered after steep losses late last week. Brent crude traded higher at $63.65 a barrel early on Monday, while US West Texas Intermediate stood at $59.79. The rebound followed Trump’s remarks suggesting potential talks with Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation forum later this month.