Dollar Slips Ahead of Fed Cut as Gold Falls Below $3,950

The US dollar eased to 98.58 early on Tuesday as traders awaited central bank meetings and President Trump’s visit to Asia, while sterling traded at $1.3368 and the yen strengthened to 151.9 per dollar. Spot gold fell to $3,941 per ounce, its lowest in nearly three weeks, after optimism over a potential US–China trade deal curbed safe-haven demand. Oil prices also edged lower late on Monday, with Brent settling at $65.62 a barrel as OPEC signalled plans to raise production in December.

Equities

The FTSE 100 ended flat on Monday after reaching record highs last week, as investors paused to take stock following recent gains. Both the blue-chip index and the mid-cap FTSE 250 held steady, supported by hopes that moderating inflation will prompt an interest rate cut from the Bank of England.

HSBC slipped 0.3% after saying its third-quarter results, due on Tuesday, will include a $1.1 billion provision linked to the loss of part of a Luxembourg court appeal involving the Bernard Madoff Ponzi scheme. The lender’s shares had fallen as much as 2.4% earlier in the session before recovering some ground.

Precious metal miners dropped 5.8% as weaker gold prices, which fell below $4,000 per ounce, weighed on the sector. The decline followed improving global sentiment around US–China trade relations, which reduced demand for safe-haven assets.

Engineering firm Goodwin rose 33.3% to a record high after forecasting annual profit above expectations and declaring an unexpected one-off interim dividend. The announcement made Goodwin one of the day’s top performers on the London market.

Food manufacturer Greencore slipped 1.6% after the UK competition regulator warned its planned £1.2 billion merger with peer Bakkavor could reduce competition in the chilled sauces market. Analysts said the regulator’s comments raised doubts about the likelihood of the deal proceeding without changes.

Across the Atlantic, Wall Street’s main indices closed at record highs for the second consecutive session on Monday. The Dow Jones Industrial Average rose 0.71% to 47,544.59, the S&P 500 gained 1.23% to 6,875.16, and the Nasdaq climbed 1.86% to 23,637.46.

Technology shares led the advance ahead of quarterly results from Microsoft, Apple, Alphabet, Amazon and Meta later this week. Qualcomm jumped 11% after unveiling two new artificial intelligence chips for data centres, while Nvidia added 2.8%, providing the S&P 500’s largest boost.

Alphabet rose 3.6%, helping lift the communication services sector 2.3% to a fresh record. Tesla gained 4.3% on optimism about the upcoming US–China trade talks. Keurig Dr Pepper rose 7.6% after upgrading its annual sales forecast and arranging $7 billion to acquire Dutch coffee company JDE Peet’s. Lululemon climbed 1.8% after announcing a partnership with the National Football League.

Argentine stocks listed in the US also rallied after President Javier Milei’s election win, with YPF up 23.8% and Banco Macro jumping 37.6%.

Forex & Commodities

The US dollar slipped ahead of a series of major central bank meetings and as investors watched President Donald Trump’s Asia tour for signs of progress on trade talks with China. The dollar index eased to 98.58 after falling the previous day, while the euro rose to $1.1668 and sterling traded at $1.3368. The yen strengthened to 151.9 per dollar ahead of the Bank of Japan’s policy meeting later this week, with markets expecting the central bank to hold rates steady but focus on the timing of its next rate rise.

Comments from US Treasury Secretary Scott Bessent during his meeting with Japan’s finance minister supported the yen after he urged “sound monetary policy”, while investors also monitored Trump’s meeting with Japan’s new Prime Minister Sanae Takaichi. Trump signed trade and rare-earth supply agreements and welcomed Tokyo’s pledge to accelerate its military build-up.

Gold extended its decline early on Tuesday, falling to $3,941 per ounce, its lowest level in almost three weeks, as optimism around a potential US-China trade deal reduced demand for safe-haven assets. Platinum fell to $1,549, silver eased to $46.51 and palladium slipped to $1,385.

Oil prices edged lower late on Monday after OPEC signalled plans to raise output again in December. Brent crude settled at $65.62 a barrel and US West Texas Intermediate closed at $61.31. Traders said the decline followed reports that eight OPEC+ countries, led by Saudi Arabia, are pushing to expand production to regain market share despite renewed US sanctions on Russia.