Precious metals miners Fresnillo PLC (LSE:FRES), Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) and Hochschild Mining PLC (LSE:HOC, OTCQX:HCHDF) were among the early FTSE 350 leaders on Monday as gold and silver prices rebounded strongly.
The spot price of gold was up 1.9% to $4,078.2 an ounce, while silver was up 3% to $49.92 an ounce.
It seemed part of a wider rally, with other key commodities, including copper and crude oil, higher, along with bitcoin and other cryptocurrencies.
The US dollar was weaker, with government bonds also selling off, lifting yields.
Market analyst Patrick Munnelly at Tickmill Group linked the advance in European equities, US stock futures and other markets to progress in Washington towards reopening the government after what has been the longest shutdown on record.
"Investors embraced risk across various asset classes. Commodities like gold, silver, copper, and soybeans posted gains, while cryptocurrencies also joined the rally.
"Bond markets saw a selloff across the curve, driving 10-year Treasury yields up nearly four basis points to 4.13%."
Ending the US government shutdown would restore access to crucial economic data, including employment and inflation figures, giving investors a clearer lens into the Federal Reserve’s policy outlook.
"While optimism surrounding a deal has buoyed markets, traders remain cautious after last week’s steep decline in tech stocks reignited worries about overheated valuations," said Munnelly.
Saxo market analyst Neil Wilson also pointed to plans by the Trump administration to dole out $2,000 'tariff dividend' stimulus cheques. "Inflationary = gold positive," he said.