London’s FTSE 100 closed at a fresh record high on Wednesday, as a strengthening US dollar countered sharp declines in commodities including gold, silver, and oil. The blue-chip index gained 118.02 points, or 1.15 per cent, ending the session at 10,341.56. Early European losses were reversed as investors focused on the potential boost to earnings for UK-listed multinationals, about three-quarters of which earn significant revenues in dollars.
The session was marked by heightened volatility across asset classes. Gold fell 1.9 per cent to $4,648.76 an ounce, its lowest closing level since mid-January and more than 13 per cent below last week’s record high. Silver followed suit, declining 1.9 per cent to $76.78 an ounce, leaving it down over a third from its recent peak.
Oil markets also experienced significant losses, with Brent crude dropping 4.4 per cent to $66.08 a barrel, marking its sharpest daily fall since June last year. The decline came after former US President Donald Trump hinted at a possible easing of tensions with Iran, an Opec member. Despite the setback, Brent remains roughly 9 per cent higher since the start of 2026.
In digital assets, bitcoin rose 1.8 per cent to $78,282 but remains more than 30 per cent below its record intraday high set in October.
Pressure on precious metals intensified late last week following Trump’s nomination of Kevin Warsh as his preferred successor to Jerome Powell as Federal Reserve chair. Warsh is viewed by investors as more likely to resist political pressure to cut interest rates aggressively, easing concerns over the long-term credibility of US monetary policy and reducing demand for traditional safe-haven assets like gold.
Despite the recent correction, analysts suggest the sell-off may have been overdone. Jefferies highlighted continued interest from both investors and central banks in real assets, citing persistent global macroeconomic uncertainty. UBS added that gold could still reach $6,200 an ounce this year, warning that pullbacks of 5–8 per cent are likely during the current stage of the bull market.
The US dollar’s rally underpinned the FTSE 100’s record-setting performance. The dollar index, which tracks the currency against a basket including the euro and yen, rose nearly 0.5 per cent on the day and has gained 1.6 per cent over the past week. A stronger dollar makes overseas revenues more valuable for UK multinationals, helping offset weakness in commodity-driven sectors.
Investors will continue to monitor movements in precious metals, oil, and digital assets as the dollar remains elevated and global markets react to developments in US monetary policy and international geopolitics.
