AngloGold Ashanti Shares Drop Amid Decline in Gold Prices
AngloGold Ashanti (NYSE:AU) shares fell by nearly 5% in pre-market trading as gold prices declined following comments from Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium. Warsh suggested that recent inflation data was not sufficient to indicate improved underlying trends, increasing market expectations for a September interest-rate hike. This led to pressure on gold and other mining stocks. Gold dropped over 3% in one session as higher rates make yield-bearing assets more attractive than non-yielding commodities like gold. Analysts have set an average price target of $113 for AngloGold Ashanti, though the stock had previously risen by about 26%. The decline coincided with a broader drop across U.S. equity markets and rising oil prices due to a tanker strike in the Strait of Hormuz.
Tickers: $AU
Topics: fed_policy gold_prices stock_movement