South African rand weakens on risk-off mood, traders await mining data

JOHANNESBURG, Jan 20 (Reuters) - The South African rand was weaker in early trade on Tuesday as forex markets continued to be dominated by "risk-off" sentiment, while domestically focused traders awaited mining data for clues on the health of Africa's most industrialised economy.

At 0756 GMT the rand traded at 16.4125 against the dollar ZAR=D3, down about 0.2% from its previous close.

Geopolitical tensions remain sky-high and continue to rise as U.S. President Donald Trump's threats to impose extra tariffs on European allies soured global sentiment and sparked a rush into safe-haven assets.

Like other risk-sensitive currencies, the rand often takes cues from global drivers such as U.S. policy and economic data.

Gold, traditionally seen as a store of value during times of instability, jumped past $4,700 per ounce for the first time on Tuesday, while silver traded near a record high.

Domestically focused investors will look to the country's statistics agency which will release November mining output figures ZAMNG=ECI at 0930 GMT.

Production rose 5.8% year-on-year in October, with Reuters economists estimating a 3.9% increase this time around, aligning with stronger commodity prices.

South Africa's benchmark 2035 government bond ZAR2035= was weak in early deals, with the yield rising 3.5 basis points to 8.45%.