Gold surges past $1,200 on global equities rout

San Francisco (Dec 9)  Gold rallied Tuesday to reclaim the $1,200 level in response to a global equities selloff.

Gold for February delivery GCG5, +3.07% jumped $37.10, or 3.1%, to settle at $1,232 an ounce, its highest close since the end of October. March silver SIH5, +5.12% added 86 cents, or 5.3%, to $17.13 an ounce.

Investors from Shanghai to New York dumped stocks as Chinese authorities took steps to tighten lending regulations while fears about Greece resurfaced after Athens announced it would hold its presidential election two months ahead of schedule.

The U.S. dollar USDJPY, -0.83%  moved down sharply against the yen, pushing back below ¥119, as a rout in stocks across the globe sent investors into the perceived safety of the Japanese currency.

A day earlier, gold rebounded as weak global economic data revived safe-haven demand for the precious metal. China, which relies on exports to fuel economic growth, reported its exports rose more slowly and Japan’s economy shrank for a second straight quarter.

However, it may be too soon for gold bugs to celebrate, according to Gary Wagner of TheGoldForecast.com.

“Gold found some support through short covering moves and some simmering technical momentum that bulls are able to stoke on the back burner,” he said. “But, we have been seeing gold swing in a range for a while. Without seriously new fundamental info, we don’t see that changing a whole lot.”

In other metals trading, January platinum PLF5, +1.46% rose $17.40, or 1.4%, to $1,246.80 an ounce, while March palladium PAH5, +1.35%  tacked on $13.80, or 1.7%, to $811.60 an ounce.

High-grade copper for March delivery HGH5, +1.37% climbed 4 cents to $2.93 a pound.

Source:  MarketWatch