The South African (SA) Rand was firmer in early trade on Monday, supported by broad gains in ​commodity prices as investors continued to assess the conflict ‌in the Middle East.

The Rand traded at 17.0525 against the Dollar, about 0.4% up from its previous ​close.

Gold prices edged up on Monday as the dollar softened, ​but gains were capped by a surge in ⁠energy prices that fuelled inflation worries.

“The Dollar, Rand has held ​up surprisingly well. SA is benefiting from being a ​commodity exporter in a world where commodity prices are rising broadly,” said Andre Cilliers, currency Strategist at TreasuryONE.

Oil prices are heading for ​a record monthly rise with Brent crude rallying above $115 ​a barrel after Yemen’s Houthis launched attacks on Israel over the weekend, ‌widening ⁠the ongoing war and adding to inflation woes.

Cilliers noted that now Brent crude has broken above the $114.80 resistance level, the next technical target for oil is $127 a barrel.

“A sustained ​oil strength ​at those levels ⁠could start unwinding the precious metals rally that has been protecting the rand,” said ​Cilliers.

Data from the SA Reserve Bank showed ​that M3 ⁠money supply growth last month was 8.39%, up from 7.44% in January.

Private sector credit growth for February was 10.50%, ⁠above ​January’s 8.83%.

SA’s benchmark 2035 government ​bond was weaker in early deals, as the yield rose 5 basis ​points to 9.19%.