(Bloomberg) -- South Africa’s benchmark stock index headed for a record as investors overlooked a US aid freeze amid a rise in gold prices stoked by President Donald Trump’s latest tariff pledge.

The FTSE JSE Africa All Share Index rose as much as 0.5% on Monday, on track for a fifth straight day of gains and surpassing its December closing peak as investors focused on the country’s economic outlook rather than worsening relations with the US. The gauge is up about 7% in dollar terms this year, compared with the 3% advance of the MSCI Emerging Market Index.

Gold miners were among the biggest gainers, with a subindex of nine gold producers climbing 2.3%, as prices for the precious metal scaled fresh peaks amid concerns Trump’s tariffs will fuel inflation.

Trump’s decision over the weekend to halt assistance to South Africa escalated a standoff between the two countries over South Africa’s land policies, relations with Iran and Russia, and opposition to Israel. But US aid to the country amounts to just around $400 million a year, mostly for healthcare programs. He hasn’t yet threatened tariffs on South African exports.

Meanwhile, investors have been encouraged by South Africa’s plans to revive its economy by stabilizing state-owned electricity and transport companies. In his state-of-the-nation speech last week, President Cyril Ramaphosa said his government will target a growth rate of more than 3% to bring down an unemployment rate of 32%.

The market will gain momentum “if reforms gain traction, while the headwind from a stronger dollar should also ease at some stage later in 2025 or early 2026,” said Peter Takaendesa, head of equities at Mergence Investment Managers Ltd.

The rand slumped as much 1.4% against the dollar following the aid-freeze announcement, but erased the decline to trade little changed by 2:16 p.m. in Johannesburg.