STOCKS NEWS EUROPE-Gold miners outperform in Fed-led rally

Gold mining stocks such as Randgold Resources and Fresnillo top the leaderboard of the pan-European FTSEurofirst 300 index, boosted by a bounce up in the price of gold after the U.S. Federal Reserve keeps its economic stimulus programme unchanged.

The Fed's decision to stick with its $85 billion monthly bond purchase programme spurs demand for gold, with spot gold trading near a one-week high, since gold is often used as a hedge against inflation which can rise in times of loose central bank monetary policy.

The price of silver also advances.

Randgold Resources tops the FTSEurofirst 300's leaderboard with a 9.4 percent rise, while Fresnillo (Other OTC: FNLPF - news) also rises 6.4 percent.

The STOXX Europe Basic Resources Index, which houses major mining stocks, rises 3.1 percent to six-month highs, making it the best-performing sector on the pan-European STOXX 600 index.

On Britain's FTSE 250 (FTSE: ^FTMC - news) mid-cap index, African Barrick Gold (LSE: ABG.L - news) tops the leaderboard with a 14.6 percent jump while Polymetal International (Other OTC: POYYF - news) rises 12.8 percent.

"Gold and silver rallied and probably have further to run," Numis mining analysts write in a research note.

Trading volumes on Randgold and Fresnillo come in above the average for the broader equity market.

Randgold trading volumes stand at 35 percent of their usual 90-day amount, while Fresnillo volumes come in at 66 percent of their usual 90-day amount, volumes on the FTSE 100 (FTSE: ^FTSE - news) stand at 14 percent of the 90-day average and volumes on the FTSEurofirst 300 stand at 23 percent of the 90-day average.

Reuters messaging rm://sudip.kargupta.thomsonreuters.com@reuters.net