Gold climbed to its highest level in six weeks as a global equity sell off caused investors to flock to the safe haven appeal of the yellow metal.  News out of China was the catalyst for a wild day in the markets.  China’s clearing agency for exchanges said that bonds rated below AAA or sold by issuers graded lower than AA are no longer allowed for use as collateral in short-term loans.  An estimated $76 billion of outstanding debt can no longer be pledged in repo agreements.  The announcement by the China Securities Depository and Clearing Corp caused the Shanghai Stock Exchange to plunge 5.4%, its biggest drop in five years.  China’s benchmark equity exchange collapse carried over to other global courses.  Anxiety on the outlook for equities forced investors to liquidate stock positions while rotating into perceived safe haven assets like the precious metals.  Gold exploded through previous resistance and finished up $30 on the day.  Offers capped the market at the convergence of the 100 DMA and a three point down trendline at $1,236.50. Silver piggy-backed on gold’s ascent and achieved an important close above $17.  The next major area to look out for is the 100 DMA at $17.95.