Precious metals move sharply higher, with gold producers leading

LONDON (Sept 19)  A dovish approach to QE by the US Federal Reserve boosted global markets overnight, and provided a platform for strong opening gains in London this morning.

Gold prices rose over 4% and silver prices jumped over 6.5% on the Fed news, pushing Randgold Resources to the top of the early leaderboard, 415.5p higher at 4,893.5p, while Fresnillo climbed 65.5p at 1,073.5p.

Base metals prices also showed firm gains, giving a boost to the wider mining sector, with Anglo American adding 71.5p at 1,649p and Antofagasta 30.25p better at 890.75p.

Following the same pattern, oil producers advanced as crude prices improved, with Shell ahead 25p at 2,174p and BP 1.75p higher at 440.05p.

Financial stocks rallied strongly after the Fed signalled a continuation of QE, with fund manager Aberdeen Asset Management the best of them, up 25.2p at 392.5p.