CNMC Goldmine Slumps as Gold Tumbles on US Inflation Pledge

CNMC Goldmine's shares plummeted by over 8% on Monday, August 31, as spot gold prices tumbled in response to the US Federal Reserve chairman's pledge to fight inflation. The company's counter ended at a low of S$1.36, retreating 8.7% or S$0.13, as it traded ex-dividend.

The dividend, to be paid on September 11, is S$0.02 in total. This decline followed spot gold falling more than 3% on Friday after Kevin Warsh, the Fed chair, said he aims to bring US inflation back to its 'firm and fixed' 2% target.

This sparked bets that the central bank will raise interest rates, causing a drop in spot gold prices. As of 3:50 pm on Monday, spot gold was about 0.3% lower at US$4,443.61 per ounce.