The combination of falling oil prices, a stronger rand and elevated gold prices has created a complex backdrop for investors as markets assess the economic implications of the US and Iran peace deal.
Gold prices remained firmly above $4,300 an ounce on Wednesday, defying expectations of a sharp retreat following the announcement of a peace agreement between the United States and Iran, as investors continued to seek protection against inflation and economic uncertainty.
The precious metal traded at $4,332.56 an ounce in early trading after gaining 0.5% on Tuesday, according to market data from Anchor Capital.
The resilience in gold prices comes despite a broad shift towards risk assets following the easing of tensions in the Middle East.
The improved sentiment helped propel the JSE All Share Index 2.5% higher on Monday to close at 115,556.20, marking its strongest close since the conflict related risk premium emerged during the Iran war.
