Skip to main content
Invest Now
012 012 5270
Copyright © Aluma Capital (Pty) Ltd. All rights reserved.
Aluma Capital (Pty) Ltd is a registered Financial Services Provider (FSP 46449) in terms of The Financial Advisory and Intermediary Services Act (37 of 2002)
Frederick Mitchell, Chief Economist | Aluma Capital (Pty) Ltd
Frederick Mitchell
October 7, 2024

South African

Gold and Foreign Exchange Reserves

September 2024

In a rapidly evolving global economy, understanding the dynamics of South Africa’s International Liquidity Position and commodity markets has never been more crucial. As we navigate rising inflation, fluctuating currency values, and geopolitical uncertainties, the implications for investors, businesses, and policymakers are profound. Discover how the recent trends in gold, oil, platinum, and coal are shaping the economic landscape and what the future holds for the rand and the broader South African market. Join us as we delve into the latest data and insights that could impact your financial decisions and strategies in the months ahead.

The South African International Liquidity Position, specifically the Net Gold and Foreign Exchange Reserves, showed further improvement in dollar terms during September 2024. The rand value experienced a slight decrease due to the rand appreciating against the U.S. dollar. Gold reserves increased in both rand and dollar value from August to September, driven by a nearly 3.7% rise in gold prices.

Foreign exchange reserves declined slightly in dollar terms during August, with a more notable decrease in rand terms, particularly as the rand appreciated by 42 cents against the dollar in September.

Several commodities of interest for South Africa include gold, oil, platinum, and coal. These commodities provide insights into the prospects for mining, fuel prices, and future inflation. Understanding these trends is crucial, as inflation expectations will influence the South African Reserve Bank’s Monetary Policy Committee (MPC) in its forthcoming interest rate decisions.

In September, the rise in gold prices was attributed to escalating risks associated with the conflict in the Middle East, as investors traditionally flock to gold during periods of uncertainty. Meanwhile, platinum prices also increased, oil prices edged slightly lower, and coal prices remained relatively stable from August to September.

The increases in gold and platinum prices are encouraging for the mining industry, while the stronger rand and lower oil prices are positive signs for inflation expectations and upcoming interest rate decisions. However, this situation could change rapidly; any further escalation in the Middle East could drive international oil prices higher and lead to a depreciation of the rand. During times of heightened uncertainty and conflict, investors often retreat from emerging markets.

A scenario involving a weaker rand and rising energy prices may compel the MPC to adopt a more hawkish stance regarding inflation expectations and interest rate decisions in the medium term.

Back to News

More Coverage

Mining Production and Sales

August 2025
In August 2025, mining activity in South Africa declined by 0.2% year-on-year, following a 5.1% increase in July.

Manufacturing Production

August 2025
In August, South Africa’s manufacturing output further declined by 1.5%, following a 1.3% decrease in July. This downturn was significantly below market expectations, which had forecasted a 0.3% increase for August. The Purchasing Managers’ Index (PMI) also fell by 1.4 points, from 50.8 in July to 49.5 in August 2025, indicating a less favourable business climate anticipated by manufacturers for the month.

Reviving South Africa’s Economy

A Balanced Path to Growth, Jobs, and Prosperity
South Africa faces significant economic challenges that threaten the nation’s stability and future prosperity. Over the past decade, sluggish growth, high unemployment—particularly among the youth—and infrastructure decay have become critical issues. These problems are compounded by inconsistent policies, energy shortages, and a prevailing uncertainty in the investment climate. The African National Congress (ANC) has recognised this urgency, unveiling a ten-point plan aimed at revitalising the economy. While this approach shows a concerted effort to address systemic issues, a complementary set of reforms proposed in the Alternative Economic Blueprint offers a promising pathway toward sustainable growth, job creation, and economic freedom.

Gold and Foreign Exchange

September 2025
The South African International Liquidity Position, measured by Net Gold and Foreign Exchange Reserves, showed growth in both USD and Rand terms for September 2025.

Private Sector Credit Extension (PSCE)

August 2025
In August 2025, credit demand grew by 5.9%, slightly below the anticipated market prediction of 6.0% for the month. Since the initiation of interest rate cuts in September 2024, there has been a noticeable acceleration in overall credit growth, with most subcategories showing increases, particularly in July.
0:00
0:00