Johannesburg - Shares of South African gold miners ended a five-day rally as the Federal Reserve’s confidence in the US economic outlook diminished the metal’s appeal as a haven.
The FTSE/JSE Africa Gold Mining Index fell 5.2 percent as of 12:48 p.m. in Johannesburg, heading for the biggest loss since September 11. Its members also led the losses on the nation’s benchmark gauge.
The rand fell a third day, losing 0.4 percent to 13.7598 against the U.S dollar.
“This could be a result of the latest Fed comments about whether they’re going to raise interest rates in December,” Ferdi Heyneke, a money manager at Afrifocus Securities, said by phone from Johannesburg. “The dollar is very strong which generally puts strain on these shares.”
All five members of the gold mining index declined with Sibanye Gold plunging 9.7 percent. The nation’s biggest producer of the metal cut its output forecast for this year after failing to recover from operational hiccups in the first quarter.
Harmony Gold Mining fell 5.8 percent and AngloGold Ashanti dropped 3.8 percent.
BLOOMBERG