AngloGold Ashanti (AU) Stock Plunges on Weak Gold Prices
NEW YORK (TheStreet) -- AngloGold Ashanti (AU) - Get Report stock is retreating by 12.52% to $14.32 in afternoon trading on Monday, after gold prices fell due to several factors, including a stronger dollar, according to Reuters. Gold becomes more expensive to hold abroad when the dollar rises.
Gold for June delivery is down by 2.15% to $1,266.20 per ounce on the COMEX this afternoon.
"Gold prices are solidly lower in early U.S. trading Monday, pressured by some profit-taking from recent gains and by better risk appetite in the general marketplace," Kitco Metals analysts explained in a note, Reuters reports.
Gold prices gained on Friday because of a weaker jobs report in the U.S., but the increase was not as strong as anticipated, Reuters added.
Johannesburg-based AngloGold Ashanti is a gold mining company with assets in South African, Ghana, Australia, 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 solid stock price performance, impressive record of earnings per share growth and increase in net income, which is offset by company's decision to favor 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.
