Fresnillo PLC (LSE:FRES) led the FTSE 100 on Friday, surging 2.4% to 2,951p as mining shares swept the index’s top positions.
The Mexican silver and gold producer’s advance came as gold and copper prices climbed sharply following a disappointing US employment report released on Thursday.
US payrolls data showed the economy added just 57,000 jobs in June, well below forecasts of around 110,000 and the fewest in four months.
The weak figures prompted traders to scale back expectations that the Federal Reserve, now chaired by Kevin Warsh, would raise interest rates at its meeting later this month.
Gold held above $4,100 an ounce on Friday, having climbed more than 2% during the previous session on the back of the softer labour market reading.
Copper producer Antofagasta PLC (LSE:ANTO) rose 1.5% to 3,911.5p, benefiting from receding rate-hike expectations and a softer dollar outlook.
Copper is particularly sensitive to expectations for global growth and dollar strength, making it a natural beneficiary when Federal Reserve tightening bets ease.
Diversified miner Anglo American followed closely, trading at 3,799.5p, while commodities giant Glencore PLC (LSE:GLEN) advanced 1.3% to 517.5p.
Lower oil prices added further support to the broader market backdrop, helping ease inflation concerns among investors.
Commercial shipping through the Strait of Hormuz continued to recover amid progress in talks between the US and Iran, contributing to the easing of energy price pressures.
The combination of softer rate expectations, higher precious metal prices, and stabilising commodity flows created a broadly favourable environment for mining stocks heading into the weekend.
Friday’s rally underlined how sensitive the mining sector remains to shifts in US monetary policy expectations and the direction of the dollar.