JOHANNESBURG: South Africa’s rand was stable in early trade on Wednesday, with analysts pointing to a surge in gold prices as the reason for the currency’s recovery.

At 0640 GMT, the rand traded at 18.9550 against the US dollar, compared with its previous close of 18.9650. The currency, hurt by weak economic data, has lost more than 3% against the greenback since the beginning of the year.

“The recent gold price surge has offered the rand some relief,” ETM Analytics said in a research note, adding that the recovery will likely be limited.

Gold prices held above the $2,100 level on Wednesday, near a record peak hit in the previous session.

South African rand unchanged in early trade

In the absence of local data points, investors will be monitoring US Federal Reserve Chair Jerome Powell’s congressional testimony that will provide guidance on the country’s monetary policy.

South Africa’s benchmark 2030 government bond was almost unchanged in early deals, with the yield at 10.105%.