JOHANNESBURG, June 18 (Reuters) - South African assets

gained on Tuesday, building on momentum after unity government

members were confirmed last week and ahead of talks by U.S.

Federal Reserve officials later in the day.

South Africa's National Assembly sat for the first time on

Friday after last month's election, where Cyril Ramaphosa of the

African National Congress (ANC) was re-elected as president.

Ramaphosa's swearing-in will take place on Wednesday.

At 1256 GMT, the rand traded at 18.0875 against the dollar

, about 1% stronger than its previous close.

"The domestic currency saw volatility around South Africa's

elections on investor uncertainty, but has now strengthened...

as the establishment of a new government has proceeded

peacefully and successfully," said Investec's chief economist

Annabel Bishop in a research note.

"The rand... is likely to see further momentum towards the

key R18.00/USD resistance level, although it will be a difficult

barrier for the domestic currency to sustainably break through."

Five political parties have signed up to join a government

of national unity including the pro-business Democratic Alliance

which is favoured by markets, after the ANC lost its majority in

the vote.

"With South Africa's election outcome seen as promoting

stability, democracy and unity, financial markets attention will

likely turn to the U.S. interest rate cut timing," Bishop added.

Traders will on Tuesday look for hints from Fed officials on

the future interest rate path of the world's biggest economy.

Like other emerging market economies, the risk-sensitive

rand often takes cues from global factors.

On the Johannesburg Stock Exchange, the blue-chip Top-40

index gained, up more than 3% from its Friday close.

South Africa's benchmark 2030 government bond was

also stronger, with the yield down 24 basis points to 9.885%.