JOHANNESBURG (Reuters) -South Africa’s commodity-backed rand and stocks fell more than 1% on Tuesday, tracking a decline in gold prices, which slipped below the $4,000-per-ounce threshold.
At 1413 GMT, the rand traded at 17.5025 to the dollar, 1.1% weaker than Monday’s close.
Spot gold was down 0.7% around the same time, while the greenback was up 0.2% against a basket of currencies.
As a major producer of precious metals, South Africa typically benefits from stronger gold prices.
On the Johannesburg Stock Exchange, the Top-40 index was down 2%, hurt mainly by precious metal miners.
Northam Platinum and Valterra Platinum were the biggest losers, their shares down about 7%.
Gold Fields , Sibanye Stillwater and Harmony Gold were all down 5%.
ETM Analytics said in a research note that South Africa’s risk-sensitive assets would remain on the defensive and probably track U.S. equity markets and the risk appetite that they reflect for a clearer direction.
South Africa’s benchmark 2035 government bond was flat, yielding 8.845%.
(Reporting by Sfundo Parakozov; Editing by Andrew Heavens and Kevin Liffey)
