AngloGold Ashanti (AU) Stock Surged Today on Higher Gold Prices
NEW YORK (TheStreet) -- Shares of AngloGold Ashanti (AU) - Get Report advanced 5.88% to $20.35 in Wednesday's trading session as an uptick in gold prices benefits the South African gold mining company.
Gold futures hit a two-year high today as uncertainty surrounding Britain's recent decision to leave the EU bolsters safe-haven demand.
The precious metal is also benefiting from minutes from the Fed's last meeting, which indicated an interest rate hike remains on hold. Non-interest bearing assets such as gold have more difficulty competing with yield-bearing assets when interest rates are higher.
"The bull market in gold and silver is all about negative real interest rates, currency market volatility and failed central-bank policy worldwide," Michael Armbruster, principal and co-founder at Altavest, told MarketWatch. "These factors point to a lack of confidence in central-bank policy and their negative effects on the global economy and currency markets."
Gold for August delivery is up 0.54% to $1,366 per ounce on the COMEX today.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
AngloGold Ashanti's strengths such as its solid stock price performance, impressive record of earnings per share growth and increase in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.
You can view the full analysis from the report here: AU
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.