AngloGold Ashanti shares gain following post-Fed spike in gold prices
Investing.com -- U.S.-listed shares in AngloGold Ashanti (NYSE:AU) surged in premarket trading in New York on Thursday, fueled by a spike in gold prices which stemmed from indications that the Federal Reserve is open to interest rates cuts next year.
By 07:46 ET (12:46 GMT), the gold miner's stock had risen by 4.90% to $17.55.
On Wednesday, the Federal Open Market Committee unanimously voted to hold rates at a range of 5.25% to 5.50%, although the U.S. central bank's quarterly "dot plot" -- an outline of future borrowing cost expectations -- showed that policymakers were factoring in three quarter-point cuts in 2024, a more dovish outlook than prior estimates.
In closely-watched comments following the Fed's final two-day policy meeting of the year, Chair Jerome Powell also acknowledged that officials are "likely at or near the peak rate for this cycle."
The dollar slumped to its lowest mark in four months on Thursday, as traders raised their bets that the Fed will move to slash rates early next year. The weakening in the greenback helped make gold less expensive for overseas buyers, contributing to a jump in spot prices for the metal above the key $2,000 per troy ounce level.
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