Johannesburg - South African shares rose more than 2% on Tuesday amid expectations that European Union policy makers will intervene to keep the eurozone from slipping into deflation, a move that should help to ease risk aversion.
Bullion producers AngloGold Ashanti [JSE:ANG] and Sibanye Gold [JSE:SGL] led the gains as gold reached a 12-week high and investors sought refuge from volatile stocks and depressed oil prices. AngloGold closed 4.45% higher at R124.70 and Sibanye rose almost 2% to R27.71.
Gold rose to $1 243.60, its highest since October, as oil prices slid as low as $45.19 a barrel, its lowest in almost six years. Falling oil prices have heightened expectations the European Central Bank will soon begin a large-scale programme of government bond buying.
Chinese trade data released on Tuesday beat expectations as exports in December rose 9.7% from a year earlier and imports dropped by only 2.4%.
"The trade data from China also seemed to beat expectations. Resources on a whole will be up ... gold and platinum prices will be up," said Kyle Dutton, a stockbroker at Mercato Financial Services.
The Top-40 advanced 2.24% on the day to 43 428. The broad All-Share index ended 1.99% higher at 49 433.
Trade was average, with 188 million shares changing hands in the session, compared with last year's daily average of 183 million shares.
Bullion producers AngloGold Ashanti [JSE:ANG] and Sibanye Gold [JSE:SGL] led the gains as gold reached a 12-week high and investors sought refuge from volatile stocks and depressed oil prices. AngloGold closed 4.45% higher at R124.70 and Sibanye rose almost 2% to R27.71.
Gold rose to $1 243.60, its highest since October, as oil prices slid as low as $45.19 a barrel, its lowest in almost six years. Falling oil prices have heightened expectations the European Central Bank will soon begin a large-scale programme of government bond buying.
Chinese trade data released on Tuesday beat expectations as exports in December rose 9.7% from a year earlier and imports dropped by only 2.4%.
"The trade data from China also seemed to beat expectations. Resources on a whole will be up ... gold and platinum prices will be up," said Kyle Dutton, a stockbroker at Mercato Financial Services.
The Top-40 advanced 2.24% on the day to 43 428. The broad All-Share index ended 1.99% higher at 49 433.
Trade was average, with 188 million shares changing hands in the session, compared with last year's daily average of 183 million shares.