FTSE 100 Slips as Gold Miners Lead Declines Amid Investor Caution

The FTSE 100 ended a three-day win streak, falling 0.4% as gold miners led declines. The FTSE 250 mirrored this drop. Investors are cautious with upcoming uncertainties in 2025, including potential tariff policies under Donald Trump and UK economic policies.

On Monday, London's FTSE 100 broke its three-day winning streak, falling by 0.4% as investors moved to secure profits ahead of the new year. Gold miners were the primary contributors to the decline, with the sector seeing a 2% dip to its lowest trading level in more than three months, amid a drop in gold prices.

Despite losses, the FTSE 100 is poised to achieve its fourth successive year of gains, while the FTSE 250 is on track for its second. Several FTSE 350 sectors experienced downturns, yet banks and travel/leisure stocks managed a modest 0.3% increase. Anticipated light trading volumes due to a holiday-shortened week add to the caution.

Looking forward, investors face uncertainty as Donald Trump re-enters the U.S. political arena, possibly altering tariff strategies. Additionally, there's scrutiny over UK Financial Minister Rachel Reeves' budget announcements and the BoE's potential monetary policies, following last year's interest rate cuts.

(With inputs from agencies.)