AngloGold Ashanti (AU -Get Report) stock is retreating 4.13% to $14.62 in afternoon trading Thursday following a decline in gold prices.
Gold for June delivery is falling 1.67% to $1,227.50 per ounce on the COMEX this afternoon after the dollar strengthened, making it more costly to hold precious metal abroad, Reuters reports.
“The big shock for the gold market, and commodities markets in general, was the big move higher in the dollar yesterday,” Danske Bank analyst Jens Pedersen told Reuters. “Overall I see gold prices remaining fairly stable around current levels.”
Gold prices could see significant declines if the Fed raises rates this year, boosting the value of the dollar, but the domestic central bank is not likely to increase rates before September, Pedersen added, Reuters noted.
South Africa-based AngloGold Ashanti is a gold mining company with operations in Ghana, Mali, Australia, Brazil, Argentina and other countries.
Separately, AngloGold Ashanti has a “hold” rating and a letter grade of C- at TheStreet Ratings because of the company’s strengths, such as solid stock price performance, impressive record of earnings per share growth and increase in net income, but the company has favored debt over equity in the management of its balance sheet.
TheStreet Ratings objectively rated this stock according to its “risk-adjusted” total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer’s view or that of this article’s author.
Source: TheStreet
