CNMC Goldmine down 7.4% after gold tumbles on US Fed inflation pledge
Spot gold has fallen more than 3% on Aug 28
CNMC Goldmine's shares plummeted 7.4% on Aug 31 following a significant decline in spot gold prices due to the US Federal Reserve chairman's commitment to combat inflation. The counter dropped to its lowest point of S$1.38 within the first 15 minutes of trading, falling by S$0.11. The decline was triggered by a sharp drop in spot gold prices exceeding 3% on Aug 28.
This move came after Kevin Warsh, the new Fed chair since May, addressed the need to bring US inflation back to its target of 2% in his inaugural speech. This announcement prompted speculation that the central bank may increase interest rates. Spot gold prices dropped by 0.2% to $4,448.06 per ounce by 9:30 am. CNMC Goldmine's shareholders had previously approved the transfer of the stock to the mainboard on Aug 20, effective from Aug 28.
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