The South African (SA) Rand gained in early trade on Monday, helped by gold prices reaching another record high.
Rand traded at 16.4225 against the Dollar, roughly up 0.4% from its previous closing level.
Soaring prices of precious metals, a major SA export, have helped to propel the Rand to its strongest in more than three years.
The currency ended 2025 nearly 13% stronger against the United State (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 Chairperson 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.
SA’s benchmark 2035 government bond also gained, with the yield falling five basis points to 8.285%.
–Reuters–
