Why SSR Mining Stock Dropped Today
Yahoo Finance ·
SSR Mining ( SSRM -3.84% ) stock tumbled 4.4% through 12:10 p.m. ET Monday after BMO Capital analyst Kevin O'Halloran reiterated his "outperform" rating on the gold and silver mining stock -- but removed his $41 price target just four months after announcing it. Gold prices have been mostly treading water the past couple weeks, trading between about $4,300 and $4,400 per ounce. They fell steeply this morning, however, down 3.9% to about $4,154. Why? It's a bit complicated, but with oil prices rising (Brent crude is up 18% over the past month), there's an expectation that inflation will rise. Ordinarily, you'd expect that to translate into higher gold prices and good news for SSR Mining. However, the worry is that inflation gets too hot, the Federal Reserve will hike interest rates to cool it down. Higher interest rates mean investors can make more money investing in bonds ( which pay interest ) than in gold (which doesn't). That's probably the reason gold is selling off today.
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