Relentless Gold Rally Fuels Record High for Commodity-Heavy JSE All Share Index
South Africa's JSE All Share market is riding the wave of bullish commodity momentum such as the Gold surge, despite global equity weakness.
Quick overview
- South Africa's JSE All Share Index has reached a new all-time high of 90,600 points, defying global stock market declines.
- The index's surge is largely driven by a historic rebound in gold prices, which have increased nearly $500 in two weeks.
- Federal Reserve Chair Jerome Powell's dovish comments on rate hikes have further bolstered bullish sentiment in the gold market.
- The JSE's strong performance is supported by its resource-heavy composition and the ongoing commodity super-cycle.
South Africa’s JSE All Share market is riding the wave of bullish commodity momentum such as the surge in Gold, despite global equity weakness.
JSE All Share Defies Global Stock Market Drop
While major U.S. equity indices struggled last week, South Africa’s JSE All Share Index maintained its bullish momentum, continuing the upward trajectory sparked by a sharp commodity rebound. On Thursday, just before markets closed for the Easter weekend, the index hit a new all-time high of 90,600 points, supported by surging gold prices and a resilient mining sector.
This marks a remarkable recovery from the early April low of 77,100 points, when the index suffered a steep decline after peaking at 90,500 points in late March. The downturn found firm footing near the 200-week simple moving average (SMA), which has acted as a long-term support zone. That technical rebound, coupled with strong demand for metals, sparked a powerful two-week rally that carried the JSE to fresh highs.
Gold’s Explosive Rebound Adds Fuel
The gold rally has been nothing short of historic, with prices soaring nearly $500 in just two weeks. After a brief correction in early April triggered by margin liquidations and broader market selloffs, gold found strong support just under $3,000 and rebounded sharply—buoyed by falling U.S. Treasury yields and heightened risk aversion.
On the back of this surge, spot gold (XAU/USD) smashed through multiple resistance levels to set another record high at $3,444. Even copper, which had taken a hit earlier in the month, has staged a notable recovery—adding to the commodity uplift that benefits the JSE’s resource-heavy composition.
Powell’s Dovishness and Geopolitical Risks Sustain Momentum for JSE and XAU
Federal Reserve Chair Jerome Powell’s recent dovish comments on future rate hikes further enhanced bullish sentiment in the gold market. Investors now anticipate potential rate cuts as early as mid-year, reinforcing the narrative that precious metals remain a preferred hedge amid economic uncertainty and geopolitical tension.
These global drivers, combined with South Africa’s rich resource exposure, are helping elevate the JSE All Share Index to levels never seen before. With the commodity super-cycle back in the spotlight, the JSE may continue to outperform peers—even as other global stock markets wobble under economic and policy pressures.
Gold XAU Live Chart
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