Precious metals stocks were among the strongest performers in London on Wednesday as gold climbed to a record high above $4,000 (£2,985) an ounce, extending a months-long rally fuelled by global uncertainty and expectations of lower US interest rates.
The surge follows a bullish forecast from Goldman Sachs, which said this week the metal could reach $4,900 by the end of the year.
Spot gold, the real-time price for immediate delivery, was $4,037 an ounce mid-morning.
Gold has now gained around one-third since April, when renewed trade tensions under US President Donald Trump unsettled global markets.
Analysts say investors are piling into gold and other safe haven assets amid a prolonged US government shutdown and concerns over delayed economic data releases.
The shutdown, now in its second week, has compounded market jitters, according to OCBC Bank strategist Christopher Wong, who described it as a “tailwind for gold prices.”
Banks and fund managers report a sharp rise in demand for gold-backed exchange-traded funds, with inflows hitting a record $64 billion so far this year, according to the World Gold Council.
Dealers say private buyers and family offices have also increased holdings as confidence in traditional markets wanes.
On the equity markets, Endeavour (up 2.6%) and Fresnillo (ahead 2%) were among the FTSE 100's biggest risers.