Johannesburg - Shares of South African gold producers reverse several days of decline and rally strongly after the US Federal Reserve stuns markets by postponing a wind-down of its commodities-friendly monetary stimulus, sending bullion up over 4 percent.
Johannesburg's gold mining index surges 8 percent to its highest in 10 days.
AngloGold Ashanti, Africa's top bullion producer, is almost 11 percent higher at 138.69 rand, making it the biggest gainer on the Top-40 index, which is up just over 2 percent.
Gold Fields has added almost 7 percent, Harmony Gold almost 9 percent and Sibanye Gold just over 4 percent.
The relief rally from the Fed's moves may not last long as the industry has many problems, including soaring costs and labour issues, and is in a state of steep decline.
A strike earlier this month which shut most of the industry only lasted three days but the wage deals which brought it to an end will add about $150 million to costs over the next 12 months, putting more pressure on marginal operations.
The Gold Mining index is still down about 45 percent so far this year. - Reuters