Mining companies dominated the FTSE 100 risers board on Friday, as gold traded above $4,500 an ounce and copper held near record levels.
Antofagasta PLC (LSE:ANTO), the Chilean copper producer, led the blue-chip index with a gain of 4% to 3,864p.
Fresnillo PLC (LSE:FRES), the Mexican silver and gold miner, rose 3% to 3,273.5p, while Anglo American PLC (LSE:AAL), the diversified miner, also added 3% to 4,076.5p.
Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF, FRA:6E2), the West Africa-focused gold producer, climbed 3% to 4,614p, and Glencore PLC (LSE:GLEN), the mining and commodity trading group, gained 2% to 598.65p.
The rally followed a sharp move higher in gold after the US Treasury said it would at least double its long-term debt buybacks, purchases of its own bonds intended to contain government borrowing costs.
The announcement sent US government bond yields and the dollar sharply lower.
A weaker dollar tends to lift precious metals, which are priced in the currency and become cheaper for overseas buyers when it falls.
Gold is regarded as a safe-haven asset, drawing investors during periods of market and political stress.
Demand has been reinforced by volatility across currency and bond markets and by rising oil prices, which point to persistent inflation.
The metal is now up around 10% over the past month and is heading for a third consecutive weekly gain.
Copper has added further support, having touched record highs above $14,000 a tonne earlier in August.
A supply squeeze on the London Metal Exchange and expected output cuts in Chile, the world's largest producer, have kept the metal elevated.
Firmer silver prices have aided Fresnillo, while Endeavour has benefited directly from the strength in gold.
Attention now turns to next week's Jackson Hole symposium, where Federal Reserve chair Kevin Warsh is due to speak on the outlook for interest rates.
