"It seems to be that it is the fear of inflation rising beyond the US Federal Reserve's comfort levels driving precious metals, helped by the suggestion of a possible rise in interest rates sooner than the Fed has been predicting all along," Sharps Pixley's Lawrie Williams said.
"We would not be too surprised to see gold targeting the $1,900 level within the next week or two, although there could also be a short-term correction due primarily to profit taking."
Among other commodities, copper closed up 1.28% in London to $10,344.75 per tonne amid supply concerns.
Workers at BHP Group's remote operations centre in Santiago, Chile, rejected the company's final wage offer, with almost 97% of the union's members opting to strike, Reuters reported.
Making moves in Toronto, minnow Chibougamau Independent Mines (TSXV: CBG) shot up 66.7% to a record closing high of C40c after Glencore-supported Vanadium One Iron expanded its Mont Sorcier iron ore-vanadium project in Quebec.
CBG has a 2% royalty on all production from Mont Sorcier.
Vanadium One (TSXV: VONE) on the other hand lost 5.3%.
Western Copper and Gold (TSX: WRN) gained 24% on news Rio Tinto Canada was making a C$25.6 million strategic investment to advance its Casino copper-gold project in the Yukon.
And Americas Gold and Silver (TSX: USA) fell 28% as Relief Canyon issues continue, while the company was hopeful a blockade at its Cosala operation would be lifted this quarter.