Gold futures fell 1.7% in New York after Fed Chairman Kevin Warsh expressed inflation concerns at Jackson Hole, pushing Treasury yields higher. Analysts view any hawkish Fed tone as bearish for gold, despite recent support from Treasury plans to increase bond purchases. Silver also dropped 1.5%.

In London, mining shares rose as European markets opened strongly, with banking stocks recovering some losses. Gold prices remained firm on safe-haven buying, boosting precious metals miners like Hochschild Mining, which gained over 3%, and Endeavour Mining, up 2.3%. Diversified miner Anglo American rose 1%, and copper miner Antofagasta gained 1.3%.

Boliden's acquisition of Nexa Resources is set to create a global zinc leader, according to Deutsche Bank analyst Liam Fitzpatrick. The deal, which includes purchasing Votorantim's 65% stake and a tender offer for the remaining 35%, will increase Boliden's consolidated EBITDA by over 35% and expand its operating assets from 12 to 20. Deutsche Bank rates Boliden a hold with a target price of 620 Swedish kronor, while shares rose 1.8% to 576.80 kronor.

Gold prices remain supported as investors fret about U.S. fiscal issues and a weaker dollar, ANZ analysts note. They expect continued buying for protection. Meanwhile, Lynas Rare Earths' guidance for the year ahead was vague, according to UBS, which maintains a buy rating but trimmed its target to A$22.50 from A$22.75. Macquarie questioned the long-term role of manganese in South32's portfolio as the company focuses on copper and zinc, raising its target to A$5.00.