SSR Mining Stock Dives as Gold Prices Plummet Amid Rising Oil Costs

Oil prices are rising, which typically leads to higher inflation expectations and higher gold prices. However, this time it's different. The market is worried that inflation will get too hot, prompting the Federal Reserve to hike interest rates to cool it down.

Higher interest rates make bonds more attractive than gold, causing gold prices to fall. This has a double whammy effect on SSR Mining, which mines gold and suffers when gold prices go lower. Its stock also suffers because high interest rates are generally bad news for stocks.

SSR Mining's primary product is becoming less attractive as bonds become more appealing in a high-interest rate environment. However, the company doesn't need to borrow money since it's free cash flow positive and has $1.8 billion in the bank.