Rand firmer as gold soars and the dollar slips

The rand was firmer on Wednesday, on track to break its six consecutive losing trading sessions with the dollar taking a back seat as investors seek refuge in gold as a safe-haven asset. The local currency lost about 2% on Tuesday as investors moved to safe-haven assets amid rising Covid-19 cases globally and deteriorating US-China trade relations.

“Global sentiment continues to drive the rand, with little optimism about in the short term,” Peregrine Treasury Solutions executive director Bianca Botes said. At 10.45am, the rand had strengthened 0.35% to R17.3155/$, 0.18% to R20.4624/€ and 0.17% to R22.6485/£. The euro gained 0.18% to $1.1817. Gold rose to a record high again on Tuesday as caution dominated the markets. On Wednesday, it firmed 0.87% to $2,035/oz and platinum 1.34% to $952.08/oz. Brent crude had firmed 2.19% to $45.28 a barrel.