Gold’s Record Run Continues. Regional Bank Issues Jolt Markets

Gold surged to a record $4,378 per ounce on Friday morning as renewed fears over US regional banks added to demand for precious metals. Shares of Zions Bancorporation fell 13% and Western Alliance dropped 11% after disclosing loan losses and fraud litigation, sending US and European stock futures lower. Elsewhere, Treasury yields fell to three-year lows, and oil prices closed at five-month lows.

Equities

The FTSE 100 closed up 0.12% on Thursday, supported by strength in the chemicals sector but was held back by losses in travel, leisure and insurance stocks. The mid-cap FTSE 250 slipped 0.13% as investors assessed mixed corporate updates and looked ahead to next week’s UK inflation data.

Official figures showed the British economy grew 0.1% in August, in line with forecasts, giving a small lift to finance minister Rachel Reeves before November’s budget. However, persistent fiscal concerns and elevated inflation continued to weigh on market confidence.

Croda International was the day’s standout performer, rising 8.5% after the speciality chemicals group reported higher sales and maintained its full-year profit guidance. The update lifted the broader chemicals index by 1.5%. In contrast, Whitbread dropped 10.3% after posting a 7% decline in half-year profit, hit by weaker food and beverage sales at its Premier Inn hotels.

Building materials supplier Travis Perkins fell 3.1% after warning of continued margin pressure and choosing not to provide full-year profit guidance. Admiral Group declined 2.4% as insurance stocks came under pressure, while XPS Pensions Group gave up early gains to close 2% lower despite stronger-than-expected half-year revenue.

In the United States, Wall Street ended Thursday’s session lower, led by declines in financial stocks after renewed concerns about regional banks.

The S&P 500 fell 0.63% to 6,629.07 points, the Nasdaq slipped 0.47% to 22,562.54, and the Dow Jones Industrial Average dropped 0.65% to 45,952.24. Zions Bancorporation tumbled 13% after reporting unexpected losses on two California loans, raising fresh worries about credit quality in the sector. Western Alliance lost 10.8% after it filed a fraud lawsuit against a borrower.

Among other large-cap stocks, Salesforce climbed 4% after forecasting annual revenue above $60 billion by 2030, topping Wall Street estimates. Tesla fell 1.5%, while Palantir and Meta Platforms each slipped around 0.8% despite optimism over artificial intelligence spending, following a positive outlook from semiconductor maker TSMC.

Hewlett Packard Enterprise dropped 10% after issuing a profit and revenue forecast below market expectations.

Forex & Commodities

The US dollar fell for a third consecutive session as traders reacted to renewed US–China trade tensions and rising expectations of interest rate cuts.

The dollar index slipped to 98.35, while the greenback weakened to 0.7930 against the Swiss franc and 151.35 against the yen after a senior Bank of Japan official said the central bank would proceed cautiously when normalising policy.

The euro rose to $1.1688 after French Prime Minister Sébastien Lecornu survived two no-confidence votes, easing political concerns in Paris.

The Australian dollar moved lower to $0.6479 after data showed unemployment reaching a near four-year high, while China’s yuan strengthened to 7.124 per dollar following the central bank’s strongest daily midpoint in a year. The pound was little changed, with investors awaiting next week’s UK inflation data for further clues on the Bank of England’s policy direction.

Gold rallied early on Friday to another record high, with spot prices reaching $4,378 per ounce before easing slightly to $4,359. The metal has risen around 8% this week, marking its best weekly performance in over 17 years.

Traders continued to buy bullion following comments from Federal Reserve Governor Christopher Waller, who said he supported another interest rate cut later this month, and amid ongoing weakness in US regional banks. Silver rose to $54.26 per ounce, supported by strong safe-haven demand and tightness in the physical market.

Oil prices fell late on Thursday, with Brent settling at $61.06 a barrel and US West Texas Intermediate closing at $57.46, both at five-month lows. Prices declined after US President Donald Trump said he would meet Russian President Vladimir Putin in Budapest to discuss ending the war in Ukraine. Additional pressure came from a larger-than-expected rise in US crude inventories, up 3.5 million barrels last week to 423.8 million, alongside record production of 13.64 million barrels per day.