Rand steady as gold gain lift stocks

An interim trade deal between the United States and China and bets of further gains in the rand helped the South African currency hold its ground on Tuesday, while a rising gold price supported stocks, which closed higher.

The rand was up 0.32% to 14.16 per dollar at 1400 GMT, dipping below the key 14.20 technical resistance level for a second time this week, a move traders said could unlock further rises with investors looking to lock-in gains.

South African inflation remains low against relatively high benchmark lending rates, making the yield on assets attractive.

High global gold prices, among the country’s top exports, also lifted the rand. The precious metal climbed to its highest in more than 1-1/2 months on Tuesday.

That helped the equity market close higher, reversing the previous session’s dip as mining shares in particular recovered.

The JSE Top-40 Index was up 0.29% at 51,023 points while the All-Share Index rose 0.27% to 57,244 points.

Impala Platinum, AngloGold, and Gold Fields all saw rises of more than 5%.

In fixed income, the yield on benchmark government paper due in 2026 was down 1.5 basis points to 8.225%.