South Africa’s rand retreats as lower gold price dampens risk-on rush

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JOHANNESBURG (Reuters) – South Africa’s rand backtracked a touch on Tuesday, reversing the previous session’s strong gains with demand dampened by lower gold prices as investors held bets ahead of a local interest rate decision later in the week.

* Rand at 14.2725 at 0700 GMT, 0.3 percent weaker than New York close. Gained nearly 2 percent in previous session, testing 14.2000 resistance before retreating slightly.

* Global demand for risk assets moderating after Monday’s rush, but traders see emerging assets remaining on front foot as investors continue search for yield.

* Gold flat on Tuesday, holding on to its losses from the previous session as appetite for risk assets caps safe haven demand.

* All 31 economists surveyed by Reuters last week expect central bank to keep repo rate on hold at 7.0 percent on July 21.

* Government bonds firmer, yield on benchmark 2026 paper cuts 1 basis point to 8.83 percent.

* Stocks open weaker, blue chip index down 0.74 percent at 46,099 points, All Share slips 0.7 percent to 52,670 points.

 

(Reporting by Mfuneko Toyana; Editing by Ed Cropley)

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