Feb 3 (Reuters) - London's FTSE 100 pulled back from a record high on Tuesday as losses in AI-exposed stocks outweighed gains in miners, with investors cautious ahead of the Bank of England's policy meeting later this week.
The blue-chip index closed down 0.26%, after hitting an all-time high of 10,373.28 points during the session.
The technology index dropped 11.8% after a sell-off in European software and data-analytics firms accelerated, as updated artificial intelligence models raised fresh doubts about whether incumbent firms can defend their business models.
Business information group RELX slid 15%, while exchange operator and data provider London Stock Exchange Group fell 12.7%, as both were caught up in the broader AI-linked selloff.
Elsewhere, the investment banking index was down 1.5%, while the retail index fell 2.6%.
"If you're looking globally, risk appetite just isn't fully restored after the metals volatility we've seen since last week. Once the dust in the metals market finally settles, I believe we'll refocus on the broader risk-taking environment," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
Gold staged its biggest one-day rally since 2008, after a two-session commodity-linked stock selloff that traders said was triggered in part by U.S. President Donald Trump's choice for the next chair of the Federal Reserve. [GOL/]
The precious-metal miners index climbed 5%, snapping a three-day losing streak.
Heavyweight miners Rio Tinto and Anglo American ended up 3.4% and 7.2% respectively, as copper also gained after supply concerns and demand prospects offered support to the red metal.
The domestically focused mid-cap index FTSE 250 was down 0.6%.
In a busy week of global central bank meetings, the BoE is expected to keep its benchmark borrowing costs unchanged at 3.75% on Thursday.
Separately, UK grocery inflation eased to 4.0% in the four weeks to January 25, its lowest since April, at a time when the BoE is keeping a close eye on food prices for signals on broader inflation pressures.
(Reporting by Tharuniyaa Lakshmi in Bengaluru. Editing by Harikrishnan Nair and Mark Potter)
By Tharuniyaa Lakshmi
