London pre-open: Stocks to edge down; gold continues to shine

London stocks were set to fall a little at the open on Wednesday, having closed a touch lower a day earlier, while gold prices continued to shine.

The FTSE 100 was called to open down around 10 points.

Stephen Innes, managing partner at SPI Asset Management, said: "Gold continued its upward march as investor demand showed no signs of cooling off, fuelled by escalating geopolitical tensions. With the Middle East on a knife's edge, traders seek refuge in the precious metal. But there’s more to this gold rush than regional conflict.

"Investors are growing increasingly jittery over the possibility of a Republican victory in the upcoming US presidential election, fearing that it could not only send US debt spiralling but also plunge the global economy into chaos, courtesy of a potentially devastating trade war. The safe-haven appeal of gold is shining brighter as uncertainty takes centre stage."

In corporate news, Lloyds reported a slight decline in statutory profits over the third quarter but still managed to beat consensus forecasts, as the banking group reiterated guidance for the full year.

Statutory profit before tax totalled £1.82bn in the three months to 30 September, down 2% on last year but well ahead of the £1.6bn expected by analysts.

Reckitt Benckiser reported like-for-like net revenue growth of 0.4% for the first three quarters of the year, driven by a strong performance in its health and hygiene segments, while US nutrition was impacted by supply disruptions, including a tornado at the Mount Vernon site.

Despite a reported net revenue decline of 3.8% due to currency headwinds, the FTSE 100 consumer products giant said it was on track to meet its full-year targets, expecting strong like-for-like revenue growth in the fourth quarter.

It said it was progressing with initiatives including leadership changes, a new operating model for 2025 and a £1bn share buyback programme.

Mexico-focused precious metals miner Fresnillo left full-year production guidance unchanged after a solid third-quarter output performance.

Quarterly attributable silver production totalled 14.4m ounces, down 1.5% on the second quarter but 2.4% ahead of last year, with year-to-date production up 1.2% on 2023. Gold output was up 20.6% over the three months at 156,800 ounces, and 18.2% higher year-on-year, but year-to-date production is down 6.6%.