Johannesburg - Gold producers such as Harmony Gold [JSE:HAR] zipped higher on Tuesday, leading a strong rally in SA shares after the previous session's sharp sell-off, with investors flocking to the precious metal as a safe haven amid global market storms.
Harmony added 11.4% to R25.57, its highest level in more than three months and its biggest one-day gain since August 2013, while Africa's top bullion producer AngloGold Ashanti [JSE:ANG] jumped 6.8% to R110.
Spot gold hit a three-week high on Tuesday as sliding oil prices and wider euro zone jitters sent investors scurrying for cover.
Technical analysts
"Investors are not sure where these other commodities are headed and at the end of the day gold is a safe haven," said Greg Davies, a trader at Cratos Capital.
Johannesburg's Gold Mining index jumped about 8% and has risen 20% in the past four weeks.
But its 14-day RSI, a momentum indicator tracked by technical analysts, show that the index is about to stray into overbought territory and so it could be due for a correction.
Johannesburg's benchmark Top-40 index added 1.8% to 42 747, clawing back some of the ground it lost on Monday when it slid almost 4%, its biggest single-day fall in over six years.
The broader All-Share index ended 1.6% higher at 48 598.
Synthetic fuels
South African markets are especially prone to global volatility because they are extremely liquid and sophisticated by the standards of emerging markets.
Among the decliners was petrochemicals giant Sasol [JSE:SOL] which fell for a fifth-straight session, hit by the downward march of the oil price.
Sasol, which sells oil and synthetic fuels, shed 1% after losing 6% in the previous session.