Shares of mainland gold producers gained handsomely for the second consecutive day as investors bet on more weakness in the US dollar after Washington unveiled a massive debt purchase plan. The gains in Hong Kong were led by Shandong province-based Zhaojin Mining, which surged 17.1 per cent to HK$11.30, followed by Zijin Mining Group, up 16.44 per cent to HK$5.88, and Real Gold Mining, which jumped 15.37 per cent to HK$5.93. Their two-day gains exceeded 25 per cent. 'Other than the US dollar's depreciation, there isn't really any other fundamental factor that has been pushing gold stocks up,' said DBS Vickers analyst Helen Wang. The United States Federal Reserve unveiled a plan to spend up to US$1.15 trillion more to buy long-term government bonds and government-guaranteed mortgage-backed securities. The move saw the greenback weaken against most other currencies and raised concerns it would stoke inflation in the long term, as the debt purchases would be financed by the Fed's printing of more money. Sinopac Securities analyst Jay Zhou said the major bond purchase plan could sustain gold prices at current levels in the next few years. He said gold would average US$950 per ounce this year and could stay at that level next year and in 2011. But he warned that gold prices would likely become more volatile because trading by investors would increase and might account for over half of total trading in the metal. Last year, jewellery demand took up over 60 per cent of sales. Meanwhile, Deputy Minister of Industry and Information Technology Miao Wei disclosed in an industry work meeting in Xiamen, Fujian province, that Beijing had set a target for the industry to produce 290 tonnes of gold this year, up 2.8 per cent from 282 tonnes last year. It set a target of 800 tonnes of new gold reserves, up from an average of 700 tonnes in the past few years. The government wants the top 10 producers by output and profitability to account for over half of the industry. Beijing also wants the industry to raise its resource recovery ratio by two percentage points this year, which could be achieved by merging small players into larger players that had more sophisticated technology.