UK's FTSE shrugs off Swiss jitters as gold miners rally

* FTSE bounces up as gold miners rally

* Gold rises after SNB move heightens market volatility

* Swiss National Bank scraps euro/franc cap

By Sudip Kar-Gupta

LONDON, Jan 15 (Reuters) - Britain's top equity index recovered from jitters caused by Switzerland's unexpected decision to end its cap on the value of the franc, as a rise in gold miners helped lift the market on Thursday.

The blue-chip FTSE 100 index stood 0.9 percent higher at 6,447.39 points going into the close of the session.

The FTSE had at one point been down around 0.6 percent after the Swiss National Bank (SNB) decided to end its cap on the euro value of the Swiss franc.

Dealers said the SNB's decision had unnerved investors as it raised the possibility of future unexpected moves by other central banks.

However, the market volatility also drove up the price of gold, a safe haven in times of economic uncertainty, which in turn lifted the shares of mining companies Randgold and Fresnillo (Other OTC: FNLPF - news) . They were among the best performers on the FTSE 100, rising 6.3 percent and 4.5 percent respectively.

"We like Randgold. The Swiss now have 20 percent greater purchasing power which should be good for gold, which is one of their favourite assets," said Gary Paulin, co-founding partner of equity brokerage Aviate Global.

A recovery in energy stocks, as the oil price bounced back from near six-year lows, also helped to lift the FTSE 100, since mining and energy stocks count for around 20 percent of market capitalisation.

The FTSE 100 hit a 2014 peak of 6,904.86 points, its highest since early 2000, but then lost ground towards the end of the year as concerns built up over the weak economic state of the euro zone.

Some traders remained cautious in the near term.

"I'd be selling rallies on the market at the moment," said Beaufort Securities sales trader Basil Petrides. (Additional reporting by Francesco Canepa; Editing by Mark Trevelyan)