Gold has climbed to its highest level in more than five months as speculation the next round of QE in the US is just weeks away pushed the precious metal higher.
UK shares were making tentative moves higher in mid-morning trading, ahead of the Jackson Hole speech by Federal Reserve chairman Ben Bernanke later today, with other markets also rising.
PIMCO's Bill Gross said the US economy needs to grow by 3% and upwards for several quarters in order to avoid another round of QE.
The spot price of gold climbed by over 1% to $1,655 an ounce as the Federal Reserve said it is likely to ease monetary policy soon unless there is a sharp change in economic data.
Ben Bernanke, chairman of the US Federal Reserve, branded LIBOR "structurally flawed" in his first remarks since Barclays was fined £290m for attempting to rig the inter-bank lending rate.
PIMCO's Bill Gross has predicted the US is poised to fall back into recession amid a climb in unemployment and tough times for corporates.
Imminent plans for another round of US quantitative easing were ruled out yesterday following the publication of the US Federal Reserve minutes, disappointing markets.