JSE plunges over 2.5% amid precious metals volatility

Volatile gold, silver and platinum prices rocked the JSE on Friday morning, with the bourse’s benchmark FTSE/JSE All Share Index plunging over 2.5% in the first hour of trade.

The Resources 10 Index, which represents commodities, saw a 7.8% decline, driving the JSE and the rand lower. The JSE Top 40 Index fell by almost 3%.

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Big swings, big risks: Commodities are volatile
Gold price U-turn

Gold plunged around 4% just before 6pm on Thursday, from its record of over $5 500 an ounce, and traded around $5 172/oz on Friday morning. Silver and platinum saw a dive of over 8% and 7%, respectively.

JSE-listed gold and platinum stocks, including AngloGold Ashanti, DRG Gold, Valterra Platinum, Northam Platinum and Harmony Gold, all plunged around 10%.

Sibanye-Stillwater and Impala Platinum fell around 8%, while African Rainbow Minerals, Gold Fields and Alphamin Resources Corp lost over 6%.

Gold and platinum group metals (PGM) counters were the 10 biggest losers on the JSE in morning trade on Friday.

All eyes are on where the JSE closes today. After ending Thursday at 125 249 points, Africa’s largest bourse dipped below 122 000 on Friday morning, though it remains more than 5% higher year to date.

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