South African rand gains as gold scales new peak
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.
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 US 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 US labour data also fuelled safe-haven demand.
On the Johannesburg Stock Exchange, the Top-40 index 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%.
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