Rand slides to R17.20/$ level, as JSE sinks further

The rand weakened to R17.24 against the dollar at one point on Monday morning, extending its recent losses as investors moved into US dollar assets amid rising geopolitical tension between the US and Iran.

It traded around the R17.20/$ range, taking its fall for March alone to more than 7% to date, reflecting growing caution in global markets as uncertainty deepens.

Listen/read: The Fog of War makes investment decisions tough

On the JSE, the All Share Index fell further, testing the 107 000 mark in early trade. It weakened around 3% from Friday and has now plunged over 14% for the month to date.

Markets are also being affected by sharp swings in commodity prices. Brent crude was trading at $113.48 a barrel around midday, staying elevated as concerns grow about possible further disruptions to global oil supply.

At the same time, gold – typically seen as a safe-haven asset – has come under pressure. The precious metal has plunged more than 15% in just one week to around $4 230 per ounce, well below its record high of $5 369 in January.

Simon Brown, investor and host of the MoneywebNOW podcast, said earlier that markets initially priced in a shorter conflict but were now adjusting expectations.

‘Things can get really ugly’

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“A week ago, the markets seemed to have priced in a shorter war, and now it seems it’s pricing in a much longer one,” he says.

Brown cautions that the trajectory of markets from here would hinge on how the conflict evolves.

“This depends on the duration of the war, the oil price, and if the war carries on much longer. If oil goes much higher, things can get really ugly.”

However, he noted that sentiment could shift quickly if tensions ease.

The sharp moves in gold point to an unusual dynamic in global markets, where investors are favouring liquidity over traditional defensive assets.

“Gold is selling off because people are moving into US dollars,” Brown notes.

“You hold a diverse portfolio to protect you from times like these. But when things get rough, everything gets sold off. And the more liquid and easier it is to sell something, the more it gets sold.”

Cash is king 

He adds that investors are prioritising cash in the current environment.

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“One would think gold would go the other way, but no, people are saying ‘we want good old-fashioned cash’ – and then that money is rushing into US dollars.”

This shift has supported a stronger dollar, with global investors favouring cash over longer-term assets.

The latest market moves come as tensions between US President Donald Trump and Iran escalate, with both sides exchanging fresh threats, raising fears that the conflict could drag on for significantly longer.

The weakness has filtered through to the local market, with early trading on Monday showing further declines among some of South Africa’s gold and platinum miners.

AngloGold and Northam Platinum were down around 8%, while Pan African Resources, Harmony Gold and Valterra Platinum traded around 6% weaker.

Sasol was up just over 2.5%, hitting a new 52-week high.

Read/listen:
Gold, stock markets plunge as war in the Middle East escalates
Sasol has nearly doubled in 12 months, but is it still cheap?
The ‘petro-dollar’ and why Africa must boost its energy refining capacity

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