UK Stocks Rally on Gold Price Surge, Rate Expectations

UK stocks are poised for their fourth consecutive weekly gain as mining companies like Hochschild and Fresnillo rallied due to higher gold prices. The FTSE 100 index rose by 0.6% to 10,933.67 points by mid-morning on Friday, while the FTSE 250 index also gained 0.3% to 24,771.10 points. The miners' gains helped offset concerns about renewed uncertainty tied to Iran and broader rate expectations.

The UK-listed shares of Hochschild, Fresnillo, and Endeavour Mining surged between 2.5% and 8.3% as gold prices jumped against a sluggish dollar. Traders at the London Stock Exchange (LSEG) expect the US Federal Reserve to raise interest rates by 25 basis points at least once this year, with a 33% probability of a second hike.

Oxford Biomedica, however, fell 18% after cutting its 2026 revenue forecast due to operational delays in the US. Goodwin, on the other hand, gained 10% as it announced potential asset sales as part of its strategic review.