Gold mining company stocks rise as gold price recovers after Fed's rate hike

Shares of gold-mining companies listed on U.S. stock exchanges rose Thursday ahead of the market open. Their movement followed a rebound in the price of gold, after the precious metal had fallen the previous day to nearly a six-week low.

Spot gold rose 1.4% to $4,324.39 per ounce. Gold prices were supported by a weaker U.S. dollar and falling oil prices, as investors weighed the Federal Reserve's (Fed) latest rate hike and the possibility of further monetary tightening ahead.

Among major mining companies, shares of Newmont and Barrick Gold both climbed about 1.2%.

The broader rally was led by South African gold miners. Harmony Gold shares rose 3.7%, Gold Fields 2.3%, AngloGold Ashanti 2.4%, and Sibanye-Stillwater 1.3%.

Among Canadian companies, Agnico Eagle Mines shares gained 2.3%, while Kinross Gold rose 1.2%.

Meanwhile, the U.S. dollar retreated from a seven-week high, making dollar-denominated gold relatively cheaper for investors holding other currencies.

Oil prices also continued their downward trend. Fears of potential supply disruptions eased after reports emerged that additional oil shipments from Saudi Arabia were being routed through Oman. However, oil prices remain above $100, as investors keep an eye on the risk of the conflict in the Middle East widening.

Earlier in the week, oil prices had risen to roughly a four-month high after shipping sources reported that loading operations had been suspended at Saudi Arabia's Yanbu export terminal on the Red Sea. Riyadh later also canceled some oil shipments to European customers.

These developments followed attacks on Saudi Arabia's East-West Pipeline, which supplies the Yanbu terminal with oil.

Gold's price recovery came after the Fed's rate hike. On Wednesday, the central bank raised its benchmark interest rate by 25 basis points, to a range of 3.75%-4.00%, and signaled the possibility of additional hikes in the coming months.

The Fed's new chair, Kevin Warsh, supported the unanimously adopted decision. The central bank's stance indicates that inflation in the U.S. remains a concern, and policymakers see a risk of it strengthening further amid rising energy prices.

Although higher interest rates typically weigh on gold, since it generates no yield, on Thursday investors focused more on the weaker dollar and falling oil prices.