London stocks edged up in early trade on Friday as investors mulled the latest UK retail sales data, with gold in focus as the price of the yellow metal came within a whisker of $5,000 an ounce.
At 0825 GMT, the FTSE 100 was 0.3% higher at 10,178.54.
Data from the Office for National Statistics showed that retail sales rose in December, beating expectations as spending picked up in the run-up to Christmas.
Retail sales volumes increased 0.4% last month, comfortably ahead of consensus for a 0.1% decline.
Driving the rise was strong demand for precious metals alongside increased supermarket sales, both of which helped offset a 0.9% slide at non-food stores.
Over the quarter, sales were down 0.3%, due to weaker trading in October and November following a bumper summer, when retailers benefited from warm weather and the Women's Euro 2025 tournament.
But sales strengthened 1.3% over the year, up from 2024's more modest 0.2% uplift. It was the second consecutive annual rise, following falls in 2023 and 2022.
However, the ONS noted that volumes had yet to recover from the 2023 fall and remained below pre-pandemic levels.
Hannah Finselbach, senior statistician at the ONS, said: "The last three months of the year saw a slight drop in retail sales following a strong third quarter, with supermarkets and online stores both down.
"However, sales were up in December, with internet retailing doing well. Within this, online jewellers had a strong month, and told us there was strong demand for gold and silver."
Investors were also keeping an eye on the gold price, after it hit a record high of $4,967 an ounce.
Kathleen Brooks, research director at XTB, said: "The weak dollar is helping to push gold to a fresh record high. The gold price is higher by more than 7% this week and is up $20 so far on Friday.
"There is no stopping the gold price right now, as the $5,000 per ounce level beckons. Investors may be willing to buy stocks in this environment, but geopolitical risk and an unconventional US President is keeping demand for the yellow metal alive as we move through January."
In equity markets, defence firm Babcock slumped as it said chief executive David Lockwood would retire at the end of 2026 after almost five years in the job and be replaced by Harry Holt, currently head of the company's nuclear division.
Former army officer Holt has been on the senior management team since November 2023. Prior to that he spent seven years at Rolls Royce in a number of roles, including president of its nuclear division.
The company also said that its performance through the third quarter had seen a continuation of the strong performance reported at the half year.
Drinks maker C&C Group tumbled as it warned on profits, citing weak consumer confidence.
On the upside, Watches of Switzerland rallied after it said late on Thursday that it had bought Texas-based Deutsch & Deutsch, a family-owned luxury watch and jewellery retailer that has been operating since the 1920s.
Restaurant, bar and café operator SSP was trading up as it backed its full-year guidance and posted a 5% jump in first-quarter like-for-like sales.
Oil giant Shell edged higher following a report it is considering a sale of its assets in Argentina's Vaca Muerta shale play and has approached potential buyers in recent weeks to gauge their interest. According to Reuters, citing sources familiar with the matter, Shell is open to selling some or all of its interests in the highly sought shale oil and gas play, part of Argentina's Neuquen basin.