JOHANNESBURG - The South African rand gained in early trade on Friday, ‍supported by ‍higher gold prices, while traders looked ahead to ​consumer inflation data due next week for signals on the ⁠health of Africa's most-industrialised economy.

At 0820 GMT, the rand traded at ⁠16.84 per ‌dollar, up 0.2% from Thursday's close and hovering near its strongest level this year, as gold ⁠held close to a seven-week high.

As a major producer of precious metals, South Africa often benefits from firmer bullion prices.

November consumer inflation data, due ⁠on December 17, will be ​in focus after South Africa cut its inflation target to 3% last month.

Headline ‍inflation is currently 3.6% in annual terms, and economists in a ​Reuters poll expect it to remain unchanged.

"As we close out the week, the ZAR appears poised to end on a strong note," ETM Analytics said in a research note as the local currency also got a boost from improved risk sentiment.

Other key releases next week include the South African Reserve Bank's bulletin for the third ⁠quarter on Monday and producer inflation ‌figures on Thursday.

On the Johannesburg Stock Exchange, the Top-40 index rose 1.8% in early trade.

South Africa's benchmark ‌2035 government ⁠bond also strengthened, with the yield falling 3.5 basis points ⁠to 8.385%.