Gold hits 4-month high as Dell and Nvidia fall

Gold rose to $3,486 per ounce on Monday, its highest level since April, while silver surged above $40 for the first time since 2011 as traders bet on a Federal Reserve rate cut this month. In equities, Dell slumped 9% on Friday, Nvidia lost 3.4%, and Marvell sank 19% after disappointing forecasts, while Caterpillar dropped 3.65% on tariff concerns. In the UK, the FTSE 100 slipped 0.3% on Friday as banking shares fell, with NatWest down 4.8%, Lloyds off 3.4% and Barclays down 2.2%, though JTC jumped nearly 18% after a takeover proposal from Permira.

Equities

On Friday, the FTSE 100 closed 0.3% lower, marking a fourth consecutive day of losses and its sharpest weekly decline in almost five months. Banking shares were the main drag after a think-tank suggested that finance minister Rachel Reeves should impose a new levy on lenders in her autumn budget.

Luxury goods also weighed on the market, with Burberry closing 2.4% lower and Watches of Switzerland down 2%. In contrast, precious metals miners moved higher in line with rising gold prices. Hochschild Mining, Fresnillo and Endeavour Mining all gained between 1.8% and 3%.

The midcap FTSE 250 index dropped 0.6% on the day, its first monthly loss in five months. One bright spot came from financial services group JTC, which surged 17.8% after private equity firm Permira disclosed a takeover approach.

Across the Atlantic, the S&P 500 slipped 0.64% on Friday to 6,460.26, a day after closing at a record high. The Nasdaq fell 1.15% to 21,455.55, while the Dow Jones Industrial Average eased 0.20% to 45,544.88. Technology stocks led the decline. Dell tumbled almost 9% after reporting that higher manufacturing costs for AI-optimised servers and growing competition overshadowed strong demand forecasts.

Nvidia dipped 3.4%, its third straight daily fall, after its quarterly results midweek failed to match elevated expectations, even as AI infrastructure demand remained strong. Chipmaker Marvell slumped nearly 19% after issuing revenue guidance below forecasts, making it the steepest faller among major US technology names. Caterpillar shed 3.65% a day after warning that tariff-related costs would increase in 2025, hitting its outlook for heavy equipment sales.

Alibaba’s US-listed shares jumped 13% on Friday, driven by stronger-than-expected growth in its cloud computing division, helped by AI-related demand. The Wall Street Journal also reported that the company had developed a new AI chip, lifting sentiment further.

Forex & Commodities

The dollar eased in Asian trading on Monday ahead of a busy week of US labour market data. It slipped against the yen to 146.98, extending a monthly decline, while the euro moved higher to $1.171 and sterling edged up to $1.352. The dollar weakened to 97.69, following a fall in August. Fed Governor Lisa Cook remains in her role for now after a court hearing on Donald Trump’s attempt to remove her ended without a ruling.

Spot gold climbed early on Monday to $3,486 per ounce, its highest level since April, after dovish comments from San Francisco Fed President Mary Daly supported expectations of a September rate cut. Silver pushed above $40 per ounce for the first time since 2011, reaching $40.56, while platinum was quoted at $1,385 and palladium at $1,118.

Oil prices held in a narrow range on Monday morning. Brent crude slipped to $67.18 a barrel and US West Texas Intermediate crude to $63.73. The market balanced concerns over Russian supply disruptions with rising production elsewhere. Russian exports fell to a four-week low, though shipments to India are set to increase in September despite US secondary tariffs.