Nov. 4 (Bloomberg) -- The rand rose the most among the world’s currencies as gold climbed to a record and South Africa’s central bank said it will refrain from intervening in an effort to manage the currency.

South Africa’s currency appreciated as much as 2.3 percent to 7.6670 per dollar, and traded at 7.6695 by 4:55 p.m. in Johannesburg, from a close of 7.8462 yesterday. Gold producers led share gains, with the FTSE/JSE Africa Gold Mining Index climbing 5.2 percent, compared to the broader benchmark’s 0.7 percent advance.

Gold reached a record $1,095.40 an ounce amid speculation central banks may buy more bullion after India purchased 200 metric tons last month. Reserve Bank Deputy Governor Daniel Mminele said policy makers will continue accumulating reserves without intervening in the foreign-exchange market, according to a copy of a speech posted on the bank’s Web site late yesterday.

“The rand is reacting mostly to international factors like the rampant gold price and positive equity-market sentiment, which is negating some of the bearish drivers of the currency,” said David Gracey, head of foreign-exchange trading at Nedbank Capital in Johannesburg. “The central bank has also reiterated that there’s been no change of policy and that it won’t do anything to directly influence the currency.”

The rand’s advance today was the biggest among 176 currencies tracked by Bloomberg.

Higher prices for gold lifted South African mining stocks and may boost the country’s export earnings, 22 percent of which come from bullion and platinum, according to the Johannesburg- based Chamber of Mines. AngloGold Ashanti Ltd., Gold Fields Ltd. and Harmony Gold Mining Ltd. jumped more than 6 percent.

Central Bank

Finance Minister Pravin Gordhan said on Oct. 28 that the government may “massage” the rand because it’s too strong, while a central bank report on Oct. 7 indicated policy makers increased dollar purchases to curb the rand’s 27 percent gain through that date.

“External factors” had played a role in the rand’s gain this year, Mminele said. The rand’s appreciation versus the dollar in 2009 now stands at 21 percent.

“Although government is concerned about the strong rand they realize they can’t take on the market,” said Gracey. “They’ve always said they won’t actively intervene.”

Government bonds rose, pushing down the yield on the benchmark 13.5 percent security due September 2015 by nine basis points to 8.38 percent. The bond’s price, which moves inversely to the yield, rose 45 cents to 123.31 rand.

To contact the reporter on this story: Garth Theunissen in Johannesburg gtheunissen@bloomberg.net

Last Updated: November 4, 2009 11:01 EST