Buying the Dip in JSE:ANG? 15% AngloGold Ashanti Share Price Correction May Spark Next Rally
After a year of unrelenting gains, AngloGold Ashanti’s stunning 2025 rally hit a wall this week, with its share price collapsing in tandem..
Quick overview
- AngloGold Ashanti's share price dropped 8.8% this week, marking a nearly 15% decline from its recent peak due to a significant correction in gold prices.
- The gold market experienced its largest single-day drop since 2013, leading to profit-taking and raising concerns about the sustainability of the recent rally.
- Despite strong financial results, including a 151% increase in headline earnings, market sentiment remained negative as falling gold prices overshadowed operational strength.
- The technical outlook for AngloGold is cautious, with key support levels being tested, indicating potential for further declines if gold prices do not recover.
After a year of unrelenting gains, AngloGold Ashanti’s stunning 2025 rally hit a wall this week, with its share price collapsing in tandem with a brutal correction in gold prices.
Stock Suffers Sharp Reversal
Shares of AngloGold Ashanti (JSE: ANG) plunged 8.8% on Tuesday, extending losses to nearly 15% from Friday’s peak of R1,383. The selloff snapped what had been one of the market’s strongest momentum trades, as investors rushed to lock in profits following gold’s dramatic pullback.
Despite the miner’s year-to-date surge of 98%, fueled by a 58% rise in gold prices, sentiment shifted abruptly when gold prices plunged 5.3% (–$300) — the biggest single-day drop since 2013. The sudden reversal erased weeks of gains and raised questions about how sustainable the gold rally truly is.
Gold’s Biggest Drop in a Decade Sparks Panic
The sharp decline in bullion was attributed largely to profit-taking after gold’s record run to $4,381 per ounce, with traders citing overbought technical indicators and an easing in global risk tensions. While gold partially recovered to $4,130, the damage was done — and leveraged plays like AngloGold bore the brunt.
Adding to the pressure, markets are eyeing an upcoming meeting between President Trump and Chinese President Xi Jinping, which could ease trade tensions and reduce the need for safe-haven assets like gold. Meanwhile, the end of India’s Diwali gold-buying season, a major driver of physical demand, further dampened sentiment.
Technical Picture Turns Cautious
From a technical standpoint, AngloGold’s weekly uptrend is under threat. The stock’s 20-day simple moving average (gray), which has provided consistent support throughout the year, was broken yesterday. Now the 50 SMA (yellow) comes to play, which we are watching, and drop toward the R1,240 zone could determine whether the bullish trend remains intact or gives way to a deeper correction.
ANGJ Chart Daily – Waiting to Buy at the 50 SMA
We are now watching for reversal candlestick patterns such as dojis or pin bars, which might signal the end of the current slide — but the tone has turned cautious, with the momentum clearly fading.
Earnings and Dividends Fail to Lift Sentiment
Even the miner’s strong financials were not enough to offset the market’s sour mood. AngloGold’s Q2 2025 results were robust, with:
- Headline earnings up 151% YoY to $639 million
- Free cash flow soaring 149% YoY to $535 million
- Net cash inflow from operations rising 142% YoY to $1.02 billion
The company also boosted its semi-annual dividend to $0.80 per share (from $0.69), offering a yield above 6% and an 85% payout ratio — clear signs of operational strength. But in a jittery market, even solid fundamentals took a back seat to falling gold prices.
Conclusion: Rally at Risk Amid Shifting Market Mood
AngloGold Ashanti’s spectacular 2025 ascent appears to be losing altitude as the gold market faces its sharpest correction in years. While long-term fundamentals remain intact, the short-term outlook is clouded by volatility, waning safe-haven demand, and technical weakness.
If gold’s recovery fails to gain traction, AngloGold’s record-breaking run could turn into a cautionary tale of overextended optimism.
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