- FTSE ends 16 points higher at 10,140.70
- US traders primed for a negative start
- Powell in Trump cross-hairs
- Precious metals and defence stocks well bid
That's a wrap
After spending much of the morning nurdling along in negative territory, the Footise edged into the green, nudging to a fresh high by the close.
The advance was led by precious metals stocks, lifted by record prices for gold and silver. Defence names were also in demand, with BAE Systems among the gainers as investors continued to add to exposure across the sector.
The drivers were broadly the same. Heightened geopolitical uncertainty has sharpened expectations of sustained defence spending on aircraft, submarines and munitions, while gold and its peers are once again being treated as a hedge against instability.
From President Donald Trump’s rhetoric over Greenland to the collapse of order in Venezuela, alongside the wars in Ukraine and Iraq, the US is now straddling an increasingly narrow line between diplomacy and confrontation on several fronts at once.
3.04pm: London edges higher as UK traders hold steady despite Wall Street wobble
UK traders held their nerve on Monday, with the FTSE 100 nudging nearly 20 points into the green, even as US markets pulled back from record highs amid fresh political drama in Washington.
Wall Street opened lower after it emerged that US prosecutors have launched a criminal investigation into Federal Reserve chair Jerome Powell. The move raised renewed concerns over the central bank’s independence, a key pillar of market stability. The Dow Jones slipped 0.3%, the S&P 500 dipped 0.1%, and the Nasdaq edged down by 9 points.
The uncertainty sent investors flocking to traditional safe havens, with gold surging to a fresh all-time high above $4,600 an ounce.
“Beyond monetary and political concerns, gold remains well supported by ongoing geopolitical risks,” said Fawad Razaqzada, analyst at City Index. He pointed to rising tensions in the Middle East as a major driver, with Iran back in focus and the threat of US military involvement once again looming.
12.50pm: Wall Street set to open in the red
The FTSE 100 remained narrowly in positive territory on Monday, edging higher despite growing signs of a downbeat session on Wall Street. US futures turned sharply lower after confirmation that Federal Reserve chair Jerome Powell is under criminal investigation, reigniting fears over political interference in monetary policy.
Powell described the move as an effort by President Trump to force interest rate cuts ahead of the election, calling the probe a politically driven “pretext.”
The fallout sent the dollar to a three-week low and lifted gold to fresh record highs as investors sought safe-haven assets. Dow, S&P 500, and Nasdaq futures all declined, with tech shares leading losses.
Tensions overseas also weighed on sentiment, with Iran unrest deepening and Trump warning of possible military action. Oil prices softened on concerns over supply disruption. US bank stocks were hit after Trump threatened legal action unless credit card interest rates are capped at 10%.
11.33m: Gold and silver break records as political tensions drive safe-haven demand
Gold and silver extended their rally to fresh record highs on Monday, fuelled by rising geopolitical risk and renewed friction between the White House and the US central bank.
Gold reached $4,601 per ounce while silver traded at $84.60, with both metals edging closer to closely watched psychological milestones of $5,000 and $100, respectively. These round-number levels are seen as key markers for investors and could trigger further volatility as they come into focus.
The latest leg higher comes amid deepening unrest in Iran, where protests have entered a third week. US President Donald Trump has refused to rule out military action or cyber-attacks in response, telling reporters on Sunday: “We’re looking at some very strong options… if they do [retaliate], we will hit them at levels they’ve never been hit before.”
At the same time, tensions have flared between Trump and Federal Reserve chair Jerome Powell, who revealed that both he and the central bank are now under investigation by the Department of Justice. The probe relates to the cost of a Fed building renovation, though Powell has described the move as politically motivated.
Trump has long criticised the Fed for not cutting interest rates more aggressively. The latest market data from the CME FedWatch tool shows only a 5% chance of a rate cut at the central bank’s next meeting on 28 January — far from the action the president has been pushing for.
With political risk rising and confidence in the dollar under pressure, investors have continued to shift into traditional safe-haven assets. Analysts expect that gold and silver could remain well supported in the weeks ahead, especially if key macroeconomic data disappoints or political tensions escalate.
9.30am: Powell faces charges
The Trump administration has threatened criminal charges against US Federal Reserve Chair Jerome Powell over his testimony to Congress last summer. Powell dismissed the move as a “pretext” to pressure the central bank. He warned it could risk political interference in interest rate decisions. Markets have reacted calmly so far. The dollar is steady, while gold briefly spiked to $4,600 before slipping back.
Oxford Nanopore rose strongly after it forecast 2025 revenue of up to £224 million, up from £183 million in 2024, and said it remains on course towards profitability.
British Land has confirmed that chief executive Simon Carter is stepping down to join logistics property group P3, backed by Singapore’s GIC. Shares in the FTSE 100 property firm have dropped 20% during his tenure, underperforming the wider index.
Plus500 was steady even after it said it expects to beat forecasts with full-year revenue of $792 million and earnings of $348 million, ahead of analyst expectations.
Gold, a classic “safe haven” asset that traders often turn to when uncertainty rises, hit fresh record highs in Asian trading as investors sought protection from market turbulence. That backdrop helped precious metals-linked stocks such as Fresnillo and Endeavour Mining climb to the top of the leaderboard in early London trading.
Defence shares were also in demand as worries about global risk drove interest in companies tied to national security. BAE Systems, for example, was up close to 3 per cent in early trade, reflecting the sector’s appeal when political instability is front of mind.
8.30am: Blue-chips drift lower as geopolitical jitters unsettle markets
The FTSE 100 opened 14 points lower at 10,110.51 on Monday, with concern over rising geopolitical tensions weighing on risk appetite.
Investors remain skittish after unrest in Iran added to unease already stirred by the Trump administration’s recent intervention in Venezuela and heightened diplomatic rhetoric around Greenland.
Gold, a classic “safe haven” asset that traders often turn to when uncertainty rises, hit fresh record highs in Asian trading as investors sought protection from market turbulence.
That backdrop helped precious metals-linked stocks such as Fresnillo and Endeavour Mining climb to the top of the leaderboard in early London trading.
Defence shares were also in demand as worries about global risk drove interest in companies tied to national security. BAE Systems, for example, was up close to 3 per cent in early trade, reflecting the sector’s appeal when political instability is front of mind.
Ahead of the open
The FTSE 100 is being called about 15 points lower ahead of the open, according to spread betting firms, as global markets react to growing political tension around US monetary policy. Even so, the index is expected to remain above the 10,000 level after last week’s strong run.
Asian equities rose on Monday, tracking Wall Street’s recent gains, but the mood was cautious. Investors are weighing reports that the US Justice Department is probing the Federal Reserve, raising concerns about central bank independence.
Fed chair Jerome Powell confirmed the investigation and criticised it as an unprecedented escalation of political pressure from Donald Trump, who has repeatedly called for further rate cuts.
Powell said the inquiry relates to his Senate testimony on a renovation project, but warned the move risks undermining trust in policy decisions.
Markets reacted quickly. Gold jumped to a fresh record near $4,600 an ounce and silver climbed towards $85, as investors sought safety. The dollar slipped, while US government bonds also softened.
Experts said investors are less focused on charges themselves than on the risk that politics is creeping into rate-setting. Oil prices edged higher as unrest in Iran added another layer of geopolitical risk to an already nervous backdrop.