Gold miners fall as bullion prices drop 3.2%
- U.S.-listed gold mining shares declined as spot gold prices fell to their lowest level since August 5.
- Spot gold dropped 3.2% to $4,149.89 per ounce, while major miners including Newmont and Barrick Mining moved lower.
- Markets reacted to higher oil prices and concerns that inflation pressures could support further Federal Reserve rate increases.
U.S.-listed gold miners fell in premarket trading as spot gold prices declined 3.2% to $4,149.89 per ounce, reaching their lowest level since August 5.
The decline came as higher oil prices increased inflation concerns and strengthened expectations that the Federal Reserve could continue raising interest rates, affecting demand for gold-related assets.
Shares of Newmont (NYSE:NEM) fell 3.4% and Barrick Mining (NYSE:B) declined 3.5%, while U.S.-listed shares of South African miners including AngloGold Ashanti, Harmony Gold, and Sibanye Stillwater dropped between 5% and 6%.
Gold mining companies are closely linked to bullion prices because revenue from their operations is influenced by the market value of the metal they produce.
Other gold miners also moved lower, with Kinross Gold (NYSE:KGC) shares declining 4.7% as investors reacted to the broader drop in gold prices and changes in interest rate expectations.
