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Rally in Spot Gold Aids Uptick in Rand

ZAR
The rally in spot gold has assisted the rand, with USDZAR seen closely matching its earlier low but still operating above key support at 18.7622, the Feb 21 low. Gold has reached a fresh all-time high in recent trade, with $2177.6, a projection level, the next upside target for the yellow metal. Meanwhile, yields on SAGBs are now just 1-2bps higher across the curve.
  • Following this morning’s GDP data for Q4, Goldman Sachs note that final domestic demand remained weak and net exports contributed negatively to growth, while inventories contributed positively. They maintain their forecast for an improvement in growth from +0.6% in 2023 to +1.5% in 2024 and see risks of a somewhat wider current account deficit than their forecast of 0.8% of GDP for Q4.

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