JOHANNESBURG, Jan 12 (Reuters) – The South African rand gained in early trade on Monday, helped by gold prices reaching another record high.
At 0736 GMT the rand traded at 16.4225 against the dollar , roughly up 0.4% from its previous closing level.
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Soaring prices of precious metals, a major South African export, have helped to propel the rand to its strongest in more than three years.
The currency ended 2025 nearly 13% stronger against the U.S. dollar and is poised to clock another year of gains.Gold broke through $4,600 per ounce for the first time on Monday, while silver also hit a record high, as investors snapped up safe-haven assets due to heightened geopolitical uncertainties and a criminal probe into Federal Reserve Chair Jerome Powell.Andre Cilliers, Currency Strategist at TreasuryONE said that the turmoil in Iran and weak U.S. labour data also fueled safe-haven demand.On the Johannesburg Stock Exchange, the Top-40 index (.JTOPI), opens new tab was up 1.2% in early trade.
South Africa’s benchmark 2035 government bond also gained, with the yield falling five basis points to 8.285%.
Reporting by Sfundo Parakozov; Editing by Toby Chopra
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