South African Rand @ 10 year high!

Just another example of a little good news going a long way.

The shine is on emerging-market currencies, and none more so the South African rand!

The SA currency has had its best three-month run in almost a decade as it embraces a wave of optimism following the election of a new leader of the ruling African National Congress (ANC).

The 19% gain in the period ended January 31 is more than double that of the next-best emerging-market currency, Poland’s zloty.

Early Thursday, the local unit was trading firmer at R11.88 to the dollar, its strongest level since 2015!

“The rand will continue to remain sensitive to the headlines surrounding political news,” Zaakirah Ismail, a fixed income analyst at Standard Bank Group. “It certainly looks like there is pressure building for a plan for President Zuma’s removal.”

The continued strength of the SA Rand will have some interesting implications on the gold price with some local analysts predicting a spot gold price of +$3000 before the end of the year!

Time to cash out on some of the crypto gains and take up a position in physical gold?
Any thoughts?