The FTSE 100 closed 58 points higher at 10,207, supported by a strong rally in bank stocks.
The index was particularly buoyed by gains in HSBC, which added more than 20 points on its own, with heavyweight constituents NatWest and AstraZeneca also contributing to the positive momentum. IG chief market analyst Chris Beauchamp said the index continues to find solid support from its largest constituents.
Meanwhile, Deutsche Bank said gold rising to $6,000 an ounce is “achievable”. The bank said the metal’s continued advance reflects persistent investment demand, including higher central bank reserve allocations and investors increasing exposure to non-dollar and real assets.
“We think USD 6,000/oz is achievable with a weaker dollar this year,” Deutsche Bank added.
Gold pushed back above the $5,100-an-ounce mark, rising a further 1.8%, while silver extended its surge, climbing 5.3% to $109.54 an ounce.
Analysts at Deutsche Bank and RBC have been crunching the numbers on where gold could head in the coming months, and the conclusion is broadly the same: the rally still has momentum. With investment demand remaining strong and macro conditions supportive, strategists suggest the upside remains wide open — and, for now, almost anything goes.
