London stocks had turned positive by midday on Monday as the sell-off in the metals market eased and as defensive issues lent a helping hand.
The FTSE 100 was up 0.4% at 10,265.68, reversing earlier losses.
The latest selloff in the precious metals market was sparked last week by US President Donald Trump's nomination of former Fed governor Kevin Warsh.
Russ Mould, investment director at AJ Bell, said: "Certain people bought gold because they were worried about a potential loss of Federal Reserve independence as Trump called for a much lower cost of borrowing. Trump surprised the market last week by nominating Kevin Warsh as the new Fed chair, an individual with hawkish tendencies and who might not favour rapid and sharp interest rate cuts.
"Having been weak for some time, the US dollar regained strength on his nomination. A stronger US dollar makes gold more expensive for buyers using other currencies, thus dampening its appeal. Warsh is also seen as having the qualities to help preserve the independence of the Fed, another relief for markets and another headwind for gold."
Mould pointed out that in an environment where gold and silver assets haven't proved to be as reliable havens as some people hoped and many tech stocks have run out of steam, "the natural place to hide is defensives".
"For some investors, a slice of toast and Marmite, and a headache tablet is just the job when markets are in a spin," he said.
"For others, buying the companies that sell these goods is also a much-needed tonic. That's why shares in consumer goods groups Unilever and Reckitt, healthcare products specialist Haleon, and various Coca-Cola bottling companies were in vogue on the UK market. In theory, their sales could be ticking over regardless of what's happening on financial markets."
Looking ahead to the rest of the week, policy announcements from the Bank of England and the European Central Bank are due, as well as the latest non-farm payrolls report. The BoE is widely expected to keep rates unchanged at 3.75% on Thursday, while the ECB is also expected to stand pat, at 2.00%.
"But with UK unemployment at a four-year high of 5.1%, jobseekers will be hoping that Andrew Bailey's comments will set the scene for further reductions in the base rate," said Derren Nathan, head of equity research at Hargreaves Lansdown.
On the macro front, a survey out earlier showed manufacturing growth in the UK hit a 17-month high in January.
The S&P Global manufacturing purchasing managers' index rose to 51.8 from 50.6 in December, coming in above the flash estimate of 51.6 and signalling growth for three months in a row. A reading above 50.0 indicates growth, while a reading below signals contraction.
The survey also showed that business optimism reached its highest level since before the 2024 Autumn budget.
Rob Dobson, director at S&P Global Market Intelligence, said: "UK manufacturing made a solid start to 2026, showing encouraging resilience in the face of rising geopolitical tensions. Rates of output and order book growth accelerated, while new export business rose for the first time in four years, with Europe, China and the US the main recipients.
"There was also a positive bounceback in business confidence, which rose to its highest level since before the 2024 Autumn budget, as manufacturers focussed on opportunities lying ahead despite persistent concerns about the geopolitical environment, Government policy and tariff tensions.
"There was also encouraging news on the jobs front. Although the strongest rise in new business for almost four years was insufficient to fully quell reductions to staff headcounts, the rate of cutting slowed to its weakest since job losses started 15 months ago. Cost pressures are creeping higher though, as the pass through of the increased Minimum Wage and employer NI contributions continue to work through the supply chain alongside the rising costs for commodities such as metals."
Separately, industry research showed that house price growth slowed in December, as the housing market ended an otherwise resilient year on a more subdued note.
In equity markets, defensive stocks were in the black, with consumer goods giant Unilever, pharma firms AstraZeneca and GSK and caterer Compass Group all higher.
Precious metals miner Fresnillo and gold miners Endeavour, Pan African and Hochschild were still weaker, but off earlier lows.
The same went for miners, with Antofagasta, Glencore and Anglo American all down but off lows.
Oil giants BP and Shell remained on the back foot, with Brent crude down 4.8% at $65.96 a barrel amid signs of a de-escalation in Iran-US tensions.