South African rand muted as stronger dollar, softer metals and Fed rate concerns weigh

• ETM Analytics said the rand was pressured by the retreat in gold and platinum prices—key South African exports—following Warsh's comments, alongside a recovery in the U.S. dollar.
• "The combination is the worst-case scenario for South Africa's terms of trade. Oil prices rose while gold and platinum prices retreated. It therefore stands to reason that the ZAR will give back some of its gains and, depending on how much further the conflict in the Persian Gulf escalates, the ZAR could find itself on the defensive throughout most of this week."
• On the Johannesburg Stock Exchange, the Top-40 index .JTOPI was last down 0.9% in early trade.
• South Africa's benchmark 2035 government bond ZAR2035= was also weaker in early deals, as the yield rose 1.5 basis points to 8.545%.

(Reporting by Anathi Madubela; Editing by Alexandra Hudson)

((Anathi.MadubelaXX.XX@thomsonreuters.com))

JOHANNESBURG, August 31 (Reuters) - The South African rand was muted in early trade on Monday, weighed down by a stronger dollar, higher oil prices and weaker precious metals prices, as well as comments from U.S. Federal Reserve Chair Kevin Warsh that further rate hikes may be needed to contain inflation.

• At 0827 GMT, the rand traded at 16.1225 against the dollar ZAR=D3, giving up earlier gains after strengthening to near 15.90 last week.
• Speaking at the Jackson Hole symposium on Friday, U.S. Federal Reserve Chair Kevin Warsh said the central bank would "have work to do" if inflation did not move convincingly towards its 2% target, signalling a greater willingness to keep raising interest rates if needed.