NEW YORK (TheStreet) -- Shares of AngloGold Ashanti (AU) are rising by 4.27% to $9.03 in midday trading on Tuesday, as gold prices rally following cautious comments from U.S. Federal Reserve policymakers, Reuters reports.
Federal Reserve Bank of Atlanta President Dennis Lockhart said Monday that he's sticking with his view that the U.S. central bank should hold off on raising rates until the middle of next year or later, the Wall Street Journal reports.
Lockhart said there was in no rush to drop the Fed's pledge to keep interest rates near zero for a "considerable time," Reuters added.
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The comments led to a pullback in the dollar. A weaker greenback makes dollar-denominated gold cheaper for holders of other currencies, Reuters noted.
U.S. gold futures are up 2.96% to $1,230.30 an ounce as of 12:24 p.m. today.
South Africa-based AngloGold Ashanti is a gold mining company with a portfolio of assets in key gold producing regions.
Separately, TheStreet Ratings team rates ANGLOGOLD ASHANTI LTD as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ANGLOGOLD ASHANTI LTD (AU) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and poor profit margins."