AngloGold Ashanti (NYSE:AU) shares fell 7.3% to $91.81 in pre-market trading as crude oil prices and U.S. Treasury yields moved higher and broader U.S. equity markets declined.
Brent crude rose above $108 per barrel, while West Texas Intermediate also advanced after U.S. President Donald Trump rejected ceasefire terms presented by Iran.
Higher energy prices can increase operating costs for mining companies, while changes in Treasury yields can affect the relative attractiveness of gold and gold-related equities.
BMO Capital Downgrades AngloGold Ashanti
The share-price decline also followed a recent rating change by BMO Capital, which downgraded AngloGold Ashanti from Outperform to Market Perform.
The source material did not provide a revised price target or further details about the reasons for the rating change.
AngloGold Ashanti’s most recent quarterly results also came in below consensus estimates for both earnings per share and revenue, according to the source material.
US Treasury Yield Rises Above 5.2%
The decline in AngloGold Ashanti shares came as major U.S. equity indexes also moved lower. The S&P 500 fell 0.5%, the Dow Jones Industrial Average declined 0.6% and the Nasdaq was down 0.9%.
The 10-year U.S. Treasury yield traded above 5.2%, while other gold mining companies also recorded declines in pre-market trading.
AngloGold Ashanti shares traded at $91.81 before the opening bell, compared with a previous closing price of $99.03.