Gold price soars above $2,300 for the first time
GOLD passed $2,300 an ounce for the first time yesterday as concerns over inflation pushed it to a fresh record high.
The precious metal reached $2,304 in early trading before slipping back.
Gold, which is seen as a safe asset to invest in during times of economic turmoil, has rallied 13pc so far this year. It has benefited from concerns about inflation, which remains above the 2pc target in the US, UK and Europe.
However, experts said it was also being driven higher by expectations that interest rates will start to fall this summer.
Analysts at the Bank of America estimate the precious metal could rise as high as $2,500 to $2,600 an ounce in the medium-term.
The gains sent London-listed gold producers higher with Fresnillo up 3.2pc, or 16.5p, to 540.5p. ‘Gold’s blistering rally may have further room to run in the medium term,’ said Singaporean bank OCBC in a note.
‘Historical evidence since 2001 showed that gold strengthened when Fed rate hike cycle ended and continued to extend its bullish run when Fed rate cut cycle gets under way. That said, we caution for the risk of a pullback.’
Miners also rallied on the back of higher metal prices, with Anglo American up 3.1pc, or 62.5p, to 2110.5p and Antofagasta adding 4.7pc, or 98p, to 2198p. The
FTSE 100 rose 0.5pc, or 38.45 points, to 7975.89 and the FTSE 250 climbed 0.6pc, or 119.55 points, to 19873.19.
Magazine publisher Future returned to growth in the three months to the end of March, providing some much-needed respite for its investors.
The company, which is behind titles such as Marie Claire and Country Life, said its improved second-quarter performance was driven by the comparison website Go Compare. Shares, which have fallen by almost a fifth this year, surged 15.9pc, or 95.5p, to 665p.
Ascential, which organises events such as Cannes Lions and Money 20/20, provided further details on its plans to return £850m to investors.
The group wants to hand up to £300m to shareholders through a tender offer where the stock would be bought at a price between 315p and 331p. The company also plans to pay a special dividend of at least £450m and launch a share buyback programme of up to £100m. Shares increased 2.6pc, or 7.8p, to 313p.
The chairman who was instrumental in helping GVC transform into Entain is stepping down in September. Barry Gibson, who joined in the gambling giant February 2020, will be replaced by board member Stella David.
Entain said it remains on the hunt for a chief executive. David has held the job on an interim basis since the departure of Jette Nygaard-Andersen in December.
Shares in the betting group rose 5pc, or 38.2p, to 797.4p.
Ocado is also preparing to say goodbye to its chairman. Rick Haythornthwaite will take on the same job at NatWest in less than two weeks. Ocado slid 5pc, or 22.1p, to 417.2p and NatWest rose 2.9pc, or 7.8p, to 280.5p.