Markets wrap: rand holds near multi-month high, gold extends third weekly gain

The rand traded firm on Friday, hovering around R16,13–R16,19 to the US dollar and holding close to its strongest levels since early March, as a subdued dollar and rallying precious metals prices supported the local currency.

Gold pushed above $4 500 an ounce, trading around $4 554,76 – up 0,86% on the day – and on course for a third consecutive weekly gain. The rally has been driven by a mix of factors: growing bets on a US interest rate cut, a weaker dollar following the US Treasury's announcement that it will more than double long-term debt buybacks to contain borrowing costs, and rising oil prices as Washington prepares fresh economic sanctions against Iran.

Continued central bank buying, particularly from China, has also underpinned demand for the metal.

On the JSE, sector positioning through the week showed a rotation toward defensive and high-momentum plays, with Consumer Staples and Platinum Miners standing out on strong multi-horizon momentum readings, and Banks maintaining a firm structural position.

Technology shares, by contrast, remained under pressure, with weakness also evident in Telecoms, Chemicals and Luxury Goods counters.

The rand's resilience this week has come against the backdrop of Wednesday's inflation data, which showed headline consumer inflation cooling to 4,3% in July from 5,0% in June – better than expected – helped by lower fuel prices following a temporary US-Iran truce.

Core inflation, however, accelerated for a fifth consecutive month to 4,2%, its highest level since July 2024, a divergence likely to keep the South African Reserve Bank cautious ahead of its next rate decision on 23 September. The central bank left its repo rate unchanged at 7% last month.

Sources: Trading Economics, Unum Capital, Markets.com

Note: Real-time closing figures for the JSE All Share and Top 40 indices could not be independently confirmed for today's session at time of writing.