Gold shook off its recent torpor and made strides back towards the US$1,600 mark.
Spot gold rose by US$15.35 to US$1,596.77 as the euro made headway against the dollar following comments from an ECB member suggesting monetary easing will continue as inflation poses little threat.
Signs that the recent steady selling by holders of gold-backed exchange traded funds may be easing also boosted sentiment.
The rate of decline has halved in the past week, according to Standard Bank.
Traders added that covering of short positions once gold went past US$1,592 may have contributed to the day’s gains.
There was some support from Asia, where the Bank of Japan's likely new deputy governor insisted the central bank must boost its monetary easing policies to end Japan’s deflationary crisis.
Spot platinum rose US$4 to US$1,604, while silver gained US$0.31 to US$29.267.
Earlier today, Alberto Baillères, chairman of Fresnillo, the world’s larger silver producer, warned: “We expect market volatility to be a permanent factor in the environment in which we operate, given an increasingly complex and often imbalanced global economy.
“There is no certainty that the fundamentals will remain in place to support long-term demand for both silver and gold, but we are well positioned to supply those markets at competitive costs and profitable levels for our stakeholders.”
His comments were made after the company, which is also Mexico’s second largest gold producer, unveiled a 24% fall in pre-tax profits to US$1.2bn.
Major movers
Randgold Resources up 155p at 5,610p.
Fresnillo down 6p at 1,484p
Anglo American up 23p at 1,884p