Shares in gold mining stocks rose Tuesday on the back of gains in the price of the precious metal to record highs above $1,400 a troy ounce, a move analysts said reflects the current optimism surrounding the industry.

As of 1423 GMT, shares in Randgold Resources Ltd. (GOLD) were up 4.2% at GBP62.40 a share, while London-listed Russian gold and iron ore miner Petropavlovsk PLC (POG.LN) rose 7.4% to GBP10.18 a share. Gold miner Avocet Mining PLC (AVM.LN) meanwhile saw its shares rally 7.4% to GBP2.29 a share and Centamin Egypt Ltd. (CELTF), a gold mining group with operations in Egypt, saw its shares rise 4% to GBP1.92 a share.

"The strength of the gold price has prompted a general market move," said Evolution Securities U.K. analyst Charles Kernot.

Recent months have seen the price of gold rocket by almost 30% since the beginning of the year, peaking earlier Tuesday at $1,422.45/oz. With a weak global economy and the dollar floundering, gold--which is traditionally a hedge against inflation--is being seen as a safe bet. The U.S. Federal Reserve's announcement that it would implement a further large-scale quantitative easing program, known as QE2, drove the dollar down last week, a move that some analysts said has added to the gold price surge.

"What we're seeing is the reaction of the market to the outcome of QE2 and the weaker dollar," said Oriel Securities U.K. analyst Charles Cooper. "This is incentivizing investors into looking into commodities. This massive sentiment improvement translates into equities," he said.

The rally in gold stocks isn't likely to subside any time soon, analysts said, given continued optimism over the price of gold.

TheBullionDesk analyst James Moore predicted the gold rally would continue, with prices reaching $1,415 a troy ounce and $1,465/oz by the end of the year, possibly topping $1,500/oz next year. "It would take a dramatic turnaround in the economic picture to bring the price down," he said.

-By Francesca Freeman, Dow Jones Newswires; +44 (0)20 7842 9413; metals@dowjones.com