Miners advanced again in London share trading on Monday morning as gold prices showed no sign of retreating and deals stayed in the spotlight after Xstrata signed a deal to buy Australian nickel producer Jubilee Mines.

Rio Tinto RTP shares climbed 3%, Antofagasta shares advanced 2.9%, Lonmin shares rose 2.6% and Anglo American shares moved up 2.4%.

The gains came after gold continued its assault toward $800 an ounce in the electronic session, rising as high as $798.30 an ounce. The contract was recently up $8.20 to $795.70 an ounce.

December gold closed at $787.50 in New York trading on Friday, after rising $16.50, or 2%, to mark its highest closing level in nearly 28 years. The gains were fueled by record-high crude prices as well as the tumbling of the dollar to a new all-time low against the euro.

Crude-oil futures were also stronger on Monday. The contract topped $93 a barrel for the first time in the electronic session, with the benchmark oil contract rising as high as $93.20 after Mexico’s Pemex halted 600,000 barrels a day of production due to bad weather.

Crude was recently up 66 cents at $92.52 a barrel.

Fresh highs for the euro meant that conditions for stronger gold prices remained in place. The euro hit another high of $1.4438 on Monday morning, and was recently trading up 0.1% at $1.4406.

In deal news, Anglo-Swiss mining giant Xstrata reached a friendly deal to buy nickel miner Jubilee Mines for 3.1 billion Australian dollars ($2.9 billion), continuing the firm’s acquisitive streak.

Xstrata is offering A$23 for each Jubilee Mines share, all in cash, representing a 36% premium to the average closing price over the past 30 trading days. Shares rose 1.4%. See full story.

Analysts at J.P. Morgan also weighed in on the sector, upgrading their view of nickel prices by 33% and iron ore by 18%.

The FTSE 100 index advanced 0.6%, or 39 points, to 6,700.30, also helped by gains from banks such as HBOS , up 2.1%. Other European markets were also higher. See Europe Markets.

Deals in focus

Bids were preoccupying the insurance sector after Resolution withdrew its recommendation of a takeover offer for the second time in a week.

Resolution said it will no longer recommend Friday’s offer from Standard Life and Swiss Re . It doesn’t believe the offer can be implemented without the support of shareholder Pearl Group. Resolution said it will now try to talk to both groups about the value of the offers, transaction structuring and plans for Resolution’s business.

Separately, Standard Life said it hasn’t ruled out increasing its offer. Its shares fell 1.1%.

Outside the top index, shares in construction company Kier Group rose 3%. Fiscal first-quarter trading was in line with expectations, the firm said, and puts the company on track to achieve its targets for the year.

Meanwhile, shares in Max Petroleum shot up 31.3% to 87 pence, after shares in the Kazakhstan-based oil and gas firm resumed trading. The shares were suspended in September pending an investigation into related party transactions, including options.

“Max Petroleum does not believe that any of the matters related to the investigation have had, or will have a material negative impact on the group, its assets, licenses, or financial position,” it said Monday.

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