Precious Metals Shine as FTSE 100 Edges Higher Amid U.S. Inflation Data

The FTSE 100 index gained on Wednesday, buoyed by precious metal miners, following U.S. inflation data that aligned with expectations, hinting at a potential Federal Reserve rate cut. Key movers included gold miner Endeavour Mining and the banking sector, while energy stocks lagged. The pound weakened against the dollar.

Britain's FTSE 100 index saw a slight uptick on Wednesday, driven primarily by gains in precious metal miners. This followed the release of U.S. inflation data that matched expectations, suggesting a possible Federal Reserve rate cut in the coming week.

The blue-chip index rose 0.3%, with precious metal miners advancing 5.1%, buoyed by a rise in gold prices. Notable performances were seen from Endeavour Mining and Pearson, the latter boosted by a price target upgrade from J.P. Morgan.

Meanwhile, the Bank of England is anticipated to maintain current interest rates, moving more cautiously compared to central banks in the U.S. and Europe. A key economic indicator, the upcoming GDP estimate for October, will be closely monitored ahead of the BoE's decision.

(With inputs from agencies.)