The global gold price surged<\/a> to an all-time high above $5,100 an ounce as central banks and investors sought refuge from geopolitical risks and market volatility.<\/p>\n Gold and other precious metals like platinum , which also set a record high on Monday, are major South African exports.<\/p>\n Their rally helped the rand gain about 14% against the dollar last year and more than 3% so far this year.<\/p>\n INVESTOR APPETITE TOWARDS SOUTH AFRICA HAS TURNED<\/p>\n South Africa’s economy struggled with slow growth and rising debt for more than a decade until last year, when investor appetite suddenly improved as economic reforms started to bear fruit and the fiscal trajectory brightened.<\/p>\n Fund managers say there has been a broad re-rating of South African assets, after years of underperformance.<\/p>\n Government bonds have been among the strongest performers, with benchmark 10-year yields falling to their lowest levels since 2019 and slowing inflation a key tailwind.<\/p>\n “We’ve got one of the highest real yields in the emerging\u2011market universe, which makes South Africa stand out for global investors,” said Malcolm Charles, a portfolio manager at Ninety One.<\/p>\n U.S. bank Goldman Sachs (GS.N), opens new tab<\/a> is upbeat on the outlook for South African stocks, saying local interest rate cuts should support economic sectors that have so far lagged.The Johannesburg Stock Exchange’s All-Share Index \u202f(.JALSH), opens new tab<\/a> gained 1.3% on Monday, reaching another record high. The benchmark 2035 government bond firmed, as the yield fell 4.5 basis points to 8.1%. Investors’ focus will soon shift to South Africa’s first interest rate announcement of 2026 on Thursday, which could be a close call.<\/p>\n Eighteen of 26 analysts polled by Reuters expect the central bank to leave its repo rate unchanged, but eight predict a 25-basis-point rate cut to 6.50% (ZAREPO=ECI), opens new tab<\/a>.<\/p>\n Some think the bank will take a cautious approach given stronger growth data that reduce the urgency of cutting rates, while others say the rand’s sharp move higher and well-contained price pressures create scope for further easing.<\/p>\n Inflation edged up to 3.6% year-on-year in December from 3.5% in November (ZACPIY=ECI), opens new tab<\/a>, data showed last week, staying within the 1\u2011percentage\u2011point tolerance band of the central bank’s 3% target.<\/p>\n Additional reporting by Anathi Madubela; Our Standards: The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n![\"The](\"https:\/\/www.europesays.com\/africa\/wp-content\/uploads\/2026\/01\/1769432174_294_chart.png\")
The multiple lines chart shows key South African assets’ gains over the last four years.THURSDAY’S RATE DECISION A CLOSE CALL<\/p>\n
\nCharts by Alessandro Parodi;
\nEditing by Alexander Winning, Sharon Singleton, Aidan Lewis<\/p>\n