Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
South Africa's first quarter data disappointed massively, adding to the concerns of the economy heading towards recession in 2016. The real GDP quarter one data in South Africa fell by 0.3 percent q/q. Data for 2015 was also revised and is also illustrating a less favourable picture. Cumulatively, the economic output has already fallen in the past 12 months.
The seasonally adjusted quarter one deficit widened by 10.5 percent q/q to reach an annualised five percent of GDP versus consensus expectations of a 4.3 percent reading. A larger deficit on the income account (related to net outward payment to non-residents) was the main drag.
The latest current-account data are unsupportive of ZAR. South Africa's rand tumbled 1.1 percent after data showed the current account deficit widened in the first quarter of 2016 as exports slumped despite a recovery in the global prices of commodities and a weaker rand.
Political turmoil in South Africa is increasingly affecting the economy which is evident in the reduced propensity to invest. Unless a rapid solution is found for the political unrest, the South African economy is going to shrink in 2016. The recent slight rise in commodity prices has provided some relief but is unlikely to see a big change.
