The strong gold price is underpinning a surge in activity in the global gold mining sector.

The precious metal hit $US800 an ounce on yesterday’s futures market, $75 dollars shy of the record set in 1980.

Analysts say inflation fears and the continuing weakness in the US dollar will drive the spot price to new highs.

It is encouraging mining giants like Newcrest to flag expansion plans and a number of producers are investigating acquisition opportunities around the globe.

Gold currently worth US$791 an ounce.

– ABC