As Gold Surges Past $4,600
CCN Editor
Cape Town:- The South African rand strengthened sharply in early trading on Monday, reaching its strongest level in more than three years, driven by record-high gold prices amid global safe-haven demand.
The rand traded at R16.4225 to the US dollar, up around 0.4% from Friday’s close. By Tuesday morning (13 January 2026), it was holding firm at R16.41, with further support from rising precious metals prices.
Gold broke through $4,600 per ounce for the first time on Monday before easing slightly to $4,596.48 on Tuesday, while silver also hit a fresh record. Analysts attributed the surge to heightened geopolitical tensions, including turmoil in Iran, weaker-than-expected US labour data, and reports of a criminal investigation involving Federal Reserve Chair Jerome Powell.
“Investors are flocking to safe-haven assets, and South Africa – a major gold exporter, is benefiting directly,” said one Johannesburg-based currency strategist.
The rand ended 2025 almost 13% stronger against the dollar and is on track for further gains in 2026, marking a remarkable turnaround for a currency that has historically been volatile.
Local markets responded positively: the JSE Top 40 index climbed 1.2% in early Monday trade, while the benchmark 2035 government bond yield fell five basis points to 8.29%.
Oil prices rose to $64.09 per barrel on Tuesday, providing additional tailwinds for commodity-linked currencies like the rand.
Economists warn that sustained strength will depend on continued global risk aversion and stable domestic fundamentals, but for now the rand’s performance offers welcome relief to importers and consumers facing imported inflation pressures.
(Story compiled from market data and analyst commentary – 14 January 2026)
