Why SSR Mining Stock Was a Winner on Wednesday
2026-09-02 23:32
•Eric Volkman •The Motley Fool
••••••• •• Axe Cap view
Gold Miners Rally on Rate Easing Hopes, but Caution Remains
Falling US rate hike expectations lifted mining shares, but local investors should watch inflation closely.
Wednesday’s weaker US jobs data cooled fears of aggressive Federal Reserve rate hikes, pushing precious metals higher and giving gold and silver miners a boost. On the JSE, that’s a positive for AngloGold Ashanti, which tends to track global gold prices closely. But don’t get too comfortable. Inflation remains sticky, and the Fed has repeatedly signaled it won’t hesitate to raise rates again if needed. Higher rates tend to hurt gold by increasing bond yields and the dollar’s appeal. The rand also feels this tug-of-war, strengthening when risk appetite improves but vulnerable if US yields surge. For South African investors, this means mining counters could see volatility as global bond markets test the pace of tightening. If inflation surprises on the upside, expect subdued upside for gold miners and a weaker ZAR. Still, current conditions offer a tactical opportunity for exposure, just not a set-and-forget bet. this is just our opinion and not financial advice
Buy AngloGold Ashanti on dips to capture short-term gains from softer rate expectations, but trim if inflation data surprises to the upside.
- AngloGold Ashanti
- USD/ZAR
- Inflation remains persistent, forcing Fed rate hikes
- Rand volatility spikes with global bond market shifts
7/10
SSR Mining stock surged over 5% on Wednesday following a weaker-than-expected jobs report from ADP, which cooled Fed rate hike concerns. Lower interest rate expectations boosted precious metals prices, benefiting gold and silver mining stocks. However, the author remains cautious, believing inflation pressures will likely lead to future rate increases that could pressure precious metals prices.
Our take is based on reporting first published by The Motley Fool.