Harmony Gold Plunges 12% as Gold Weakens on Rate Hike Bets

Key Facts

1Harmony Gold Mining stock fell nearly 12% this week as gold weakened on expectations of Fed rate hikes.

Amid mounting pressure on gold mining stocks from rising Fed rate hike expectations, Harmony Gold Mining shares tumbled nearly 12% this week, according to media reports.

The decline coincided with a drop in gold prices globally, as the metal is non-yielding and tends to be sold when rates rise. Canadian inflation data for May, which came in above forecasts at 3.2% (per market data), reinforced rate hike bets, while markets await Fed officials' speeches this week.

Harmony Gold faces further headwinds as uncertainty over monetary policy persists. Investors will focus on upcoming U.S. economic data and Fed comments for direction on gold and mining stocks. The yellow metal needs stable rate expectations to regain its safe-haven appeal.