{"id":484942,"date":"2025-10-09T06:17:29","date_gmt":"2025-10-09T06:17:29","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/484942\/"},"modified":"2025-10-09T06:17:29","modified_gmt":"2025-10-09T06:17:29","slug":"footsie-and-gold-soar-to-record-highs-as-investors-shrug-off-bank-of-englands-ai-correction-warning","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/484942\/","title":{"rendered":"Footsie and gold soar to record highs as investors shrug off Bank of England’s AI ‘correction’ warning"},"content":{"rendered":"

By JOHN-PAUL FORD ROJAS, DEPUTY BUSINESS EDITOR<\/a> <\/a> and HUGO DUNCAN <\/p>\n

Updated: 17:02 EDT, 8 October 2025 <\/p>\n

Stock markets soared and the price of gold topped $4,000 for the first time yesterday as investors shrugged off warnings of \u2018a sharp correction\u2019.<\/p>\n

On a record-breaking day on financial markets, the FTSE 100 rose 0.7 per cent, or 65.29 points to an all-time high of 9548.87, while bullion hit $4,059 an ounce.<\/p>\n

Silver also hit a new record high of close to $50 an ounce.<\/p>\n

The bullish mood was mirrored around the world, with the Paris stock market clawing back its recent reverses following the collapse of the French government.<\/p>\n

The rally came even as the Bank of England and International Monetary Fund (IMF) warned of the risk of a sudden correction as they compared the artificial intelligence boom with the dot-com bubble 25 years ago.<\/p>\n

\u2018The risk of a sharp market correction has increased,\u2019 the Bank said, adding the impact on the UK economy would be \u2018material\u2019.<\/p>\n

\"New <\/p>\n

New records: The FTSE 100 rose 0.7%, or 65.29 points to an all-time high of 9548.87, while bullion hit $4,059 an ounce<\/p>\n

Echoing those comments, the IMF\u2019s managing director Kristalina Georgieva warned that \u2018a sharp correction\u2019 could \u2018drag down world growth\u2019 and \u2018expose vulnerabilities\u2019.<\/p>\n

The comments highlighted growing fears of a stock market crash but yesterday did little to dampen the mood on trading floors.<\/p>\n

\u2018The warning about a correction in stocks has failed to halt the risk-on atmosphere,\u2019 said Chris Beauchamp, chief market analyst at the investing and trading platform IG.<\/p>\n

The Footsie is up nearly 16\u00a0per cent this year and has hit new highs in five of the past eight sessions \u2013 triggering predictions that it could hit the 10,000 mark by the end of December.<\/p>\n

The blue-chip index\u2019s gains have outstripped those of the S&P 500, which is up 15\u00a0per cent in New York after hitting a record high last night, and the Cac 40, which has risen 9\u00a0per cent in Paris.\u00a0<\/p>\n

The Nasdaq is also at an all-time high having risen 19\u00a0per cent this year.<\/p>\n

Germany\u2019s Dax has fared even better, however. It has gained 23\u00a0per cent this year as the promise of increased military and infrastructure spending overshadows the threat of recession.<\/p>\n

But the standout performer has been gold \u2013 up by 50\u00a0per cent this year \u2013 amid concerns \u2018runaway\u2019 government spending around the world will push up inflation<\/a> and debt.<\/p>\n

\"\" <\/p>\n

Central banks have been buying bullion as they look to diversify away from a weakening dollar and there are signs that retail investors are piling into what has been described as \u2018gold-plated FOMO\u2019 \u2013 or \u2018fear of missing out\u2019.<\/p>\n

Gold\u2019s dizzying rally has underlined its status as a haven for investors in times of trouble.<\/p>\n

Michael Brown, a senior research strategist at brokers Pepperstone, said that the case for gold to rise even further \u2018remains a solid one amid runaway fiscal spending\u2019.<\/p>\n

Russ Mould, investment director at AJ Bell, said the increase in the gold price \u2013 even as stock markets scale new heights \u2013 suggests many investors are looking to protect themselves against a potential crash.<\/p>\n

\u2018While stock markets have generally done well this year, gold has been a superstar,\u2019 he said.<\/p>\n

\u2018Traditionally, investors would load up on the shiny stuff when markets look gloomy, not when they are motoring ahead.<\/p>\n

\u2018It shows that investors are hedging their bets, particularly as there are growing concerns that euphoria around artificial intelligence has gone too far and the bubble could burst at some point.\u2019<\/p>\n

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\n Footsie and gold soar to record highs as investors shrug off Bank of England’s AI ‘correction’ warning<\/p>\n