Gold was moving within a narrow range above the US$1,300/oz level today, benefiting from the declining stock markets in Europe and the US as well as a decline in the US dollar against the euro.
The Federal Reserve has recently said that it is prepared to take additional measures to support the slowing economic recovery, raising expectations of an increased inflation and further weakening of the US dollar.
Gold has risen to record levels over the past year with investors using it as a safe haven amid volatility in equity and currency markets.
A poll of the delegates at the annual conference of the London Bullion Market Association showed expectations of a hike to US$1,450/oz within a year.
The delegates also predicted silver to reach US$24/oz, while foreseeing putting platinum prices of US$1,857/oz.
Gold stood at US$1,307/oz. Silver and platinum rose to US$20.76/oz and US$1,647/oz respectively.
Gold producers Randgold Resources (LON:RRS) and African Barrick Gold (LON:ABG) posted small losses, as did platinum miner Lonmin (LON:LMI).
Silver miner Fresnillo (LON:FRES) did better, tacking on nearly 1%.
Midcaps Aquarius Platinum (LON:AQP) and silver producer Hochschild Mining (LON:HOC) were sitting just below the opening level. Gold miner Petropavlovsk (LON:POG) lost 2.5%.
Diversified mining investment company Electrum Resources (LON:ECR) was among the top risers in the sector, rallying 24%. Copper and gold explorer Solomon Gold (LON:SOLG) followed with a 21% surge. Australia operating mining exploration company GGG Resources (LON:GGG), gold and high value base metals focused exploration and development company Stratex International (LON:STI) and diamond producer Stellar Diamonds (LON:STEL) climbed 16%, 15% and 12% respectively.
Turkey and Saudi Arabia operating explorer KEFI Minerals (LON:KEFI) joined the party, rising 11%.
Copper and gold focused exploration and development company EMED Mining (LON:EMED) and investment holding company Mariana Resources (LON:MARL) advanced 9.5% and 7% respectively.