NEW YORK (TheStreet) -- AngloGold Ashanti (AU) - Get Report stock is up 1.17% to $12.13 in afternoon trading on Wednesday as investors flocked to gold as a safe heaven, boosting the price of the precious metal, Reuters reports.
Gold for April delivery is rising 1.28% to $1,238.30 per ounce on the COMEX this afternoon.
"Gold is rising on the back of weak risk appetite, but what stands out today is that the market is rising even though the dollar is higher as well," Danske Bank senior analysts Jens Pedersen told Reuters. "We've definitely reached a new range above $1,200 due to re-pricing risks of Fed rate hikes."
Further gains in gold prices, however, depend on monetary policy changes, especially from the Fed, Reuters added.
"The sustainability of gold's rally comes down to the Fed and the market pricing in only one or no rate increases this year," Robin Bhar from Societe Generale told Reuters.
An interest rate hike in the U.S. would make gold more expensive to hold abroad.
AngloGold Ashanti is a South Africa-based gold mining company with operations in 10 countries, including Ghana, Australia, Brazil and the U.S.
Separately, AngloGold Ashanti has a "sell" rating and a letter grade of D at TheStreet Ratings because of the company's unimpressive growth in net income, generally high debt management risk, poor profit margins, weak operating cash flow and declining stock price.
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 articles's author.