South Africa’s benchmark stock index extended gains for a fifth consecutive session on Wednesday as soaring gold prices pushed precious metals miners to multi-year highs.
The FTSE/JSE Africa All Share Index climbed as much as 1.1 percent and is now on track to close at a record level following strong demand for haven assets.
The rally was led by gold and platinum producers, which responded positively to a fresh surge in bullion prices.
Gold reached a new all-time high on Wednesday, driven by a weaker US dollar and mounting global trade tensions.
The dollar fell to a six-month low against major currencies following new US restrictions on semiconductor exports to China, including curbs on Nvidia Corp.
Harmony Gold Mining Company and AngloGold Ashanti gained over 7 percent while Gold Fields rose as much as 9.4 percent.
The precious-metals mining subindex advanced by 7.2 percent to hit its highest level on record.
Platinum-group metals miners also rallied with Impala Platinum Holdings up more than 5 percent and Sibanye Stillwater climbing 8 percent.
Analysts at Scotia Capital Inc. expect the sector to benefit further from the rally in gold.
They forecast return on invested capital for producers could rise to 15 percent at spot prices of $3220 per ounce.
If gold prices remain elevated, South African miners could see continued earnings expansion and enhanced shareholder returns.
All Weather Capital portfolio manager Chris Reddy attributed the gains to a flight to safety as investors rotate away from tech equities and risk assets.
He noted that the broad weakness in the dollar has supported commodity-linked sectors, including gold and platinum.
The JSE is up more than 7 percent in dollar terms in 2025 compared to a 1.4 percent decline in the MSCI Emerging Markets Index and an 8.3 percent fall in the S&P 500.
The local index has now fully erased a nearly 10 percent slide triggered by recent US tariff announcements.
With ongoing global uncertainty and rising interest in hard assets, analysts expect South African resource stocks to remain resilient in the near term.
Investor focus will remain on commodity price trends and US-China policy developments, which continue to shape equity flows in emerging markets.
