Gold surges to 2-month high; bullion advances 0.9% as Chinese stocks tumble

Gold surged to a two-month high as more declines in global stocks boosted demand for a haven and prompted traders to push back bets on when the Federal Reserve will next raise interest rates.

Bullion, which is this month’s best performing metal, advanced as much as 0.9% as Chinese equities tumbled to a 13-month low. Investors raised holdings in goldbacked funds to the highest since November and South African gold mining stocks rallied to the highest in almost a year.

Gold closed above its 100-day moving average on Monday for the first time since October, a bullish signal for some analysts who study charts. It’s now trading near the 50% retracement of its drop from October to December, a Fibonacci level that some traders use to gauge whether a rally will continue or stall. Prices may climb toward $1,200 if they breach strong technical resistance of about $1,140.

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Posted in: Indian Market Tips