Gold slips from record as Nvidia and Lyft swing

Gold retreated to $3,637 per ounce on Thursday after touching $3,707 the day before, as the dollar strengthened to 97.16 following the Federal Reserve’s quarter-point rate cut. Nvidia fell 2.6% on Wednesday after reports that China’s regulator asked major firms to halt purchases of its AI chips, while Lyft jumped 13.1% after Alphabet’s Waymo announced autonomous taxi plans in Nashville. Brent crude eased to $67.69 a barrel, and shares in Australia’s Santos dropped 13.6% after ADNOC ended its $18.7 billion takeover bid.

Equities

The FTSE 100 edged 0.14% higher on Wednesday, closing at 8,145. British stocks recovered from the previous session’s losses as investors awaited the US Federal Reserve’s policy decision later in the day. Gains were led by consumer and energy names.

Burberry rose 4.2% after strength in personal goods helped lift the sector by nearly 4%. Centrica climbed 3.6% after Morgan Stanley named the energy group its top pick on growing nuclear opportunities. PRS REIT advanced about 6% after agreeing to sell its operating unit to Waypoint Asset Management for £646 million. Aston Martin added 7.8% to lead the FTSE 250 after demand for its luxury models supported sentiment. Unilever ended almost flat after news that Ben & Jerry’s co-founder Jerry Greenfield had resigned following disagreements with the parent company.

In the United States, trading was choppy after the Federal Reserve announced a quarter-point rate cut and signalled two more reductions later this year. The Dow Jones Industrial Average closed 0.57% higher at 46,018, supported by gains in financial stocks such as American Express. The S&P 500 slipped 0.10% to 6,600 and the Nasdaq Composite lost 0.32% to 22,261.

Nvidia fell 2.6% after a report that China’s internet regulator had urged major technology firms to halt purchases of the company’s AI chips. Workday jumped 7.2% following reports that Elliott Management had built a stake exceeding $2 billion in the human-resources software group. Lyft surged 13.1% after news that Alphabet’s Waymo will launch autonomous taxi services with the ride-hailing firm in Nashville next year, while Uber fell 5% in response.

The Fed’s projections and Chair Jerome Powell’s comments on labour-market risks tempered hopes of a faster pace of easing. Powell emphasised that inflation risks remain even as jobs data weaken.

Forex & Commodities

The US dollar firmed on Thursday after a volatile session following the Federal Reserve’s latest decision. It rebounded from 96.22 against a basket of peers, its weakest level since early 2022 reached late on Wednesday, to trade at 97.16 early today. The euro slipped to $1.179, having briefly touched $1.192 after the Fed statement. Sterling eased to $1.360 from an overnight high of $1.373 as traders looked ahead to the Bank of England’s decision later today, with rates expected to stay at 4%. The yen weakened to 147.2 per dollar after briefly strengthening to 145.5 overnight.

The New Zealand dollar fell to $0.5909 this morning, its lowest since 8 September, after GDP data showed a 0.9% contraction in the second quarter, well below forecasts. Westpac now expects a half-point rate cut at the Reserve Bank of New Zealand’s next meeting. The Australian dollar slipped to $0.6628 after employment unexpectedly fell in August. The greenback edged up to C$1.379 after the Bank of Canada trimmed rates by a quarter point on Wednesday.

Spot gold fell to $3,637 per ounce by mid-morning, extending losses from a record $3,707 struck on Wednesday. Holdings in the SPDR Gold Trust dropped to 975.66 tonnes on the same day. Silver eased to $41.40 per ounce, while platinum rose to $1,372 and palladium was little changed at $1,152.

Oil prices weakened for a second day. Brent crude stood at $67.69 a barrel this morning, while US West Texas Intermediate traded at $63.77, as attention stayed on oversupply and concerns over US fuel demand despite a sharp drop in crude inventories.