Precious metals stocks led the FTSE 100 on Monday, with Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) and Fresnillo PLC (LSE:FRES) topping the leaderboard as gold and silver surged to new record highs.
Spot gold climbed 1.6% on Monday to about $4,411 an ounce, while silver rallied to an all-time high of $69.45 overnight before nudging back a little to $69.08.
However, the 2.8% spike extended a powerful run that has characterised much of the year.
The move appeared to reflect a mix of end-of-year portfolio hedging and longer-term forces that remain firmly in place.
For gold, sustained buying by central banks has continued to underpin prices. Silver, meanwhile, has been boosted by strong industrial demand, particularly from sectors linked to electrification and renewable energy.
The latest surge followed softer-than-expected inflation and employment data in the United States last week, which reinforced expectations that the Federal Reserve will begin easing monetary policy next year.
Geopolitics added to the mix. Oil prices jumped after the US escalated a tanker standoff with Venezuela, pushing Brent crude back above $61 a barrel after hitting one-year lows. As Saxo strategist Neil Wilson put it: "Geopolitics for show, fundamentals for dough."