South Africa’s gold mining index climbed the most in four months as the price of the metal rose after the U.S. Federal Reserve extended a promise to keep interest rates near zero. The FTSE / JSE Africa Gold Mining Index (JGOLD) climbed 4.8 percent, the biggest gain since Sept. 19, from 1:09 p.m. in Johannesburg. AngloGold Ashanti Ltd. (ANG), Africa’s biggest producer of the metal, rose 4.5 percent. Gold Fields Ltd. (GFI), the world’s fourth largest gold producer, rose 4.4 percent. Gold rose as much as 0.5 percent to $ 1,718.57, the highest since December 9, after Federal Reserve Chairman Ben S. Bernanke said the Fed is considering additional asset purchases to stimulate growth after promising to keep interest rates low until at least 2014.
“People are moving to the shares when the price of gold goes up,” David Davis, a gold analyst at SBG Securities, said by phone from Johannesburg.
Global miners including Barrick Gold Corp. (ABX), Newmont Mining Corp. and Rand Gold Resources Ltd. (RRS) overtake profits by gold South African miners and the rim strengthened against the dollar, the price of gold in marginal terms, Davis said .
Disappointing fourth-quarter economic growth in the UK also helped push gold higher, he said.
Gross domestic product fell 0.2 percent from the third quarter, when the 0.6 percent, the Office for National Statistics said in London yesterday. The median forecast of 33 forecasts in a Bloomberg survey was for a decline of 0.1 percent.
source:bloomberg
Oil Pares Gains on Forecast Drop in U.S. demand, Inventory Gain
Oil gains in New York compared to the expectations of stocks will increase as U. . . Read more »
Australian mining stocks slide after tax profits
Australian mining shares tumbled on Monday after the government slapped the industry with a new 40 percent profits tax, prompting global miners to warn that billions of dollars in new projects were at risk. . . Read more »
