The gold price surged to a new high above $3,300 on Wednesday as financial markets moved money out of riskier assets as US-China trade tension showed little sign of easing.
Gold notched a new record just above $3,317 per troy ounce, up from just below $3,220 overnight and $3,050 a week ago.
The yellow metal has risen around 25% in the year-to-date.
Gold miner Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) led the FTSE 100, as a result, up 6%, with precious metals group Fresnillo PLC (LSE:FRES) behind it, up 2.4%, while among mid-caps Hochschild Mining PLC (LSE:HOC, OTCQX:HCHDF) rose 3.9%.
Analysts at Saxo said gold had bagged fresh record highs due to US President Trump ordering a probe into critical minerals, semiconductors and pharmaceuticals, "sparking a fresh move towards safe havens".
Recent price upgrades from major banks, including Goldman Sachs on Friday and UBS yesterday, has given investors the confidence to continue to buy.
The bank's analysts cited stronger demand from central banks and rising interest from investors seeking safe-haven assets amid recession concerns.
Goldman predicted prices could range between $3,650 and $3,950 an ounce, and said a downturn could push prices as high as $3,880.
UBS lifted its year-end price forecast to $3,500, saying it now expects central banks to buy 1,000 metric tons of gold this year, an increase from its earlier estimate of 950 tons.