JOHANNESBURG, May 27 (Reuters) - South Africa's rand

weakened against a stronger dollar on Tuesday, hurt by lower

gold prices as risk sentiment improved following U.S. President

Donald Trump's decision to postpone tariffs on the European

Union.

At 1510 GMT, the country's commodity-backed currency traded

at 17.8900 against the dollar, about 0.2% softer than

its previous close.

Meanwhile on the stock market, the Top-40 index was flat

with mining companies under pressure as the price of gold fell

by more than 1%.

South African miners Gold Fields, AngloGold

Ashanti ( AU ) and Sibanye Stillwater all traded down

for much of Tuesday's trading session.

But shares of Harmony Gold, South Africa's top

gold producer by volume, fell more sharply after the company

agreed to buy Australian miner Mac Copper Ltd ( MTAL ) in a deal

worth $1.03 billion.

Domestic investor focus will firmly be on the central

bank's interest rate decision later this week.

Economists polled by Reuters expect the South African

Reserve Bank (SARB) to cut its main interest rate by 25 basis

points to 7.25% on Thursday.

South Africa's inflation stayed below the SARB's target

range of 3% to 6% in April while the local currency has

recovered from its recent losses to trade below 18 per dollar.

Central bank data earlier in the day showed South Africa's

composite leading business cycle indicator rose 1.1% month on

month in March.

In fixed income, South Africa's benchmark 2030 government

bond was stronger, with the yield down 5 basis points

at 8.84%.