• USD/ZAR slipped lower on Friday as rising gold prices and a weaker dollar boosted the commodity-linked currency.
• Gold, one of South Africa’s key exports, climbed to a more than three-month high on Friday and was on track for a third consecutive weekly gain.
• Gold was supported by a weaker dollar and the U.S. Treasury’s plan to increase buybacks of longer-dated securities.
•U.S. Treasury Secretary Scott Bessent said the government could further increase Treasury buybacks after the Treasury announced plans to double purchases of longer-dated bonds next quarter.
• The U.S. dollar was on track to end a volatile week lower, making dollar-priced bullion more affordable for overseas buyers.
•Like other emerging market currencies, the rand has been at the mercy of global market sentiment, particularly since the start of the Iran war.
• Immediate resistance is located at 16.085(38.2%fib), any close above will push the pair towards 16.330(SMA 02).
• Strong support is seen at 15.901(Lower BB) and break below could take the pair towards 15.705(Lower BB).
Recommendation: Good to sell around 16.100 with stop loss of 16.200 and target price of 15.900
