Shares of AngloGold Ashanti Plc (AU 2.01%) are falling on Monday, down 5.4% as of 3:26 p.m. ET. The move comes as the S&P 500 and the Nasdaq Composite gained 1% and 1.6%, respectively.
The gold and precious metals miner is seeing its shares decline as trade tensions between the U.S. and China appear to cool.
NYSE: AU
Key Data Points
Trump sparks hope for a trade deal with China
Breaking from the heated rhetoric of the past weeks, President Donald Trump today indicated he was confident he would secure a trade deal with China during upcoming negotiations. Trump praised President Xi Jinping and predicted both countries would reach an agreement.
Image source: Getty Images.
Precious metals like the gold, silver, and copper that AngloGold mines have jumped in value amid the ongoing trade tensions between the U.S. and China. Miner stocks have followed suit.
AngloGold's rally at risk
AngloGold's sales have grown dramatically in the last year, roughly mirroring the rise in metals prices. The major concern here is that if metals prices come back down to earth as trade tensions continue to cool, its stock price could fall even further. When gold fell roughly 15% in 2022, AngloGold's stock fell more than 50%.
