Rand firms, gold on track for best weekly gain since January

The South African rand edged higher in early trade on Friday, supported by strong gold prices, as investors awaited US non-farm payrolls data due later in the day for clues on the Federal Reserve's interest-rate path, Reuters reports via CNBC Africa. 

On Friday morning the rand was trading at 16.34 to the dollar, up around 0.2% from the previous close.

Gold, one of South Africa's key exports, firmed further and was on track for its biggest weekly gain since January, helped by weaker oil prices as hopes for peace in the Middle East eased inflation expectations. 

The dollar was little changed against a basket of currencies as traders awaited the payrolls figures, due at 12:30 GMT, with economists polled expecting around 80,000 jobs added and unemployment holding steady at 4.2%.

TreasuryONE currency strategist Andre Cilliers said traders were likely to stay cautious given the payrolls report and the long weekend ahead, with many preferring to hold long dollar positions until there was greater clarity on the Fed's policy outlook.

On the domestic front, South Africa's net foreign reserves rose to $71.76 billion at the end of July, up from $71.34 billion in June, according to central bank data. 

Attention next week turns to manufacturing and second-quarter employment figures on Tuesday, followed by mining production data on Thursday, for further signals on the health of Africa's most industrialised economy.

On the JSE, the Top 40 index was up 0.7% in early trade. South Africa's benchmark 2035 government bond weakened, with the yield rising 4 basis points to 8.43%.