FTSE 100 dips as gold miners drag market lower

London’s FTSE 100 fell 0.1% to 10,663.68 by 1037 GMT as precious metal miners led declines, the sector down 0.9%, while the mid-cap FTSE 250 slipped 0.06%.

A pullback in gold prices followed a retreat from a two-week high. A stronger US dollar ahead of the US Federal Reserve’s policy meeting minutes later this week pushed gold lower, placing pressure on mining companies listed in London.

Travel and leisure stocks were among the brightest spots. easyJet’s shares jumped 9.9% after the airline agreed in principle to a sweetened takeover proposal from US investment firm Castlelake, valuing the carrier at up to £5.5 billion. The travel and leisure sector rose 0.7% overall.

Media stocks outperformed, up about 0.9%. Advertising group WPP climbed 3.9% and broadcaster ITV gained 1.6% after ITV agreed to sell its media and entertainment division to Comcast-owned Sky for £1.6 billion.

Investors monitored developments in the Middle East. Shipping through the Strait of Hormuz continued without disruption, and expectations of increased oil supply contributed to lower oil prices during the session.

Attention also focused on UK policy. Banks estimate potential rule changes affecting Britain’s government bond market could support gilts and reduce the government’s annual borrowing costs by more than £1 billion. Some former regulators warned such changes might increase financial stability risks.

Among individual stocks, Ocado fell 5.6% after the company announced Chief Executive Tim Steiner will remain in the role until the start of the 2028 financial year and that it aims to appoint a successor by then.

Traders balanced lower commodity prices against a steady flow of corporate transactions and awaited the Federal Reserve’s meeting minutes for further guidance on monetary policy.