Rand Reacts to SA’s Election Results

Investors in South Africa had positioned for an election outcome where the ruling African National Congress could comfortably govern in coalition with a smaller party. But projections hinting at a significant erosion in ANC support have rattled those expectations and unleashed a flood of uncertainty. The rand plummeted after a model developed by a state research agency showed that the ANC looks set to lose its parliamentary majority for the first time since it came to power at the end of apartheid three decades ago. Gold remains flat at $2,344, while platinum and palladium declined. Weak Chinese PMI data has softened copper and Brent prices, reviving demand concerns. US/China trade war fears weigh base metals and oil prices.

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