CNMC Goldmine down 7.4% after gold tumbles on US Fed inflation pledge

[SINGAPORE] Shares of CNMC Goldmine fell as much as 7.4 per cent on Monday (Aug 31) after spot gold prices tumbled on the US Federal Reserve chairman’s pledge to fight inflation.

The counter fell to as low as S$1.38 within the first 15 minutes of trading, retreating S$0.11, as it traded ex-dividend. The dividend, to be paid on Sep 11, is S$0.02 in total.

CNMC Goldmine’s drop followed spot gold falling more than 3 per cent on Friday. This came after Kevin Warsh, in his first speech since becoming the Fed chair in May, said that he aims to bring US inflation back to its firm and fixed 2 per cent target. This spurred bets that the central bank will raise interest rates.

Spot gold was about 0.2 per cent lower at US$4,448.06 per ounce as at 9.30 am on Monday.

CNMC Goldmine’s shareholders on Aug 20 approved the previously Catalist-listed stock’s transfer to the mainboard with effect from Aug 28.