The US dollar steadied near a five-week low while gold surged to a record $3,508.00 an ounce on expectations of a Federal Reserve (Fed) rate cut this month, with markets pricing in an 89% chance of a 25 basis point move in September.
Wall Street reopens after Monday’s holiday, with futures slightly weaker as investors focus on upcoming labour data, including Friday’s non-farm payrolls (NFPs), to gauge the possibility of a larger cut.
FTSE 100 remains under pressure
The FTSE 100 probes the July-to-early August highs at 9,189-to-9,157 which may act as a support zone.
If fallen through on a daily chart closing basis, the mid-August low at 9,127 will be next in line.
Resistance can now be spotted at the mid-August high at 9,228. While it caps, downside pressure is likely to be maintained.