The rand gained further ground on Monday, supported by higher gold prices as local investors look towards the year’s last bit of economic data for clues on the health of South Africa’s economy.

Shortly after 2pm, the currency was trading at R16.78/US$, continuing a firming trend that started in April. The rand is now at its strongest level since January 2023.

Gold held near a more than seven-week high on Monday on a weaker dollar and lower US yields, and as a major producer of precious metals, South Africa often benefits from firmer bullion prices.

“Through the past week, the ZAR was able to capitalise on weaker USD sentiment. As the USD remained in a weaker trend, the ZAR was able to sustain the break below 16.90/dlr and open the door for even more ZAR appreciation,” ETM Analytics said in a research note.

“Technically speaking, the ZAR could now test levels in the 16.60s before the end of the year, which would play a significant role in reinforcing the virtuous cycle that has resulted in the ZAR appreciating as much as it has this year,” ETM Analytics said.

Read: Green shoots are breaking through South Africa’s economic static

Later this week, investors will look to November consumer inflation data and producer inflation figures. South Africa’s benchmark 2035 government bond was firmer in early deals, as the yield fell 5 basis points to 8.39%. — Anathi Madubela, (c) 2025 Reuters, with additional reporting (c) 2025 Newscentral Media

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