Why Anglogold Ashanti Stock Dropped Today

• Silver prices deed an all-time precocious past night.

• Silver and golden sold disconnected this morning, with metallic losing astir doubly arsenic overmuch worth arsenic gold.

• 10 stocks we similar amended than AngloGold Ashanti Plc ›

Anglogold Ashanti (NYSE: AU) banal tumbled 6.5% done noon ET Monday connected a large reversal of the precious metals trade.

As CNBC reports, metallic deed an all-time precocious terms northbound of $80 an ounce past night, but dropped dramatically this greeting arsenic traders took profits, falling arsenic debased arsenic $70.25 per ounce. At past report, metallic prices were inactive down astir 7.1% astatine $71.70 per ounce, and golden prices were down 4.3% astatine $4,357.60.

2025 has rewarded metallic and golden investors richly. Silver started the twelvemonth adjacent $20 an ounce, but much than tripled successful terms done past night. (Gold prices are up 65% year-to-date.) For commodities that deduce their worth mostly from investors seeking hedges against ostentation -- dissimilar banal successful a business, which creates worth by producing goods and services implicit clip -- these are enticing gains.

The benignant that makes investors deliberation astir selling and locking successful profits.

This whitethorn beryllium what's happening today. Moreover, pundits suggest what began arsenic a mild bout of profit-taking this greeting whitethorn beryllium gathering into a "flash crash" arsenic investors, who bought metallic and golden connected margin, commencement facing borderline calls, expanding the unit to merchantability earlier gains evaporate.

Anglogold Ashanti investors, though, should bash their champion to defy the unit to sell.

Consider: At conscionable 20.5 times trailing earnings, Anglogold shares fertile among the cheapest publically traded metallic and golden stocks. The company's 2.2% dividend yield, moreover, is among the sector's richest. Perhaps champion of all, analysts who travel this assemblage expect Anglogold to turn its net by a staggering 73% adjacent twelvemonth arsenic golden prices proceed to rise.

If they're close astir that, contiguous could beryllium precisely the incorrect clip to merchantability Anglogold stock.

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