Based out of Johannesburg, South Africa, AngloGold Ashanti Limited (AU) is a gold mining company that was founded in 2004. Currently they are the third biggest gold producers in the world, representing 7% of the worldwide production. It operates in four continents with 21 facilities in countries such as Ghana, Australia and Brazil.

AngloGold Ashanti‘s stocks decreased by 3.26% staying at $13.35 during afternoon trading on Tuesday as strong economic data drives expectations for an interest rate increase, pressuring gold prices.

Gold for August delivery is down by 0.94% per ounce on the COMEX this afternoon.

This behavior had been observed since April by different experts.

“The big shock for the gold market, and commodities markets in general, was the big move higher in the dollar yesterday”, says Danske Bank analyst Jens Pedersen. “Overall I see gold prices remaining fairly stable around current levels.”

By April the outlook was that, if the Fed raised rates (with the intention of helping boost the value of the dollar) gold prices were expected to see a significant drop. However, the domestic central bank is not likely to increase rates before September, Pedersen added.

The higher interest rates would boost the dollar, making gold and other dollar-denominated commodities more expensive to hold abroad. In early MayKitco Metals analysts explained in a note, reported by Reuters, “Gold prices are solidly lower in early U.S. trading Monday, pressured by some profit-taking from recent gains and by better risk appetite in the general marketplace.”

The positive economic data as of now is the biggest reason for the price drop.  The Company explained their outlook for the rest of the year on May 9th on their quarterly report, from their investor portal:

DAILY STOCK PICKS: has identified a handful of stocks with serious upside potential in the next 12-months.  Learn more.

“The outlook for the full year remains unchanged as follows: production between 3.6Moz to 3.8Moz; total cash costs between $680/oz and $720/oz and AISC between $900/oz and $960/oz, assuming average exchange rates against the US dollar of 15.00 (Rand), 4.00 (Brazil Real), 0.70 (Aus$) and 14.90 (Argentina Peso), with oil at $35/bl average for the year, based on market expectations. The impact of the Savuka section of Tau Tona seismic event on 29 April 2016, is still being evaluated and assessed.”

“The high level of speculative interest and renewed interest rate hike speculation in the U.S. makes gold susceptible to a price correction in the short term,” Commerzbank analysts exclaimed.

The company has solid stock price performance, impressive record of earnings per share growth and increase in net income.

From the company’s quarterly investor report:

Must read: Teck Resources Stock Affected Due To Falling Oil Prices

“We again generated significant free cash flow despite the lower gold price, which shows the continued success of our self-help measures to reduce debt by improving margins,” Srinivasan Venkatakrishnan, Chief Executive Officer of AngloGold Ashanti, said. “Not withstanding our strong cost performance, we’re redoubling our efforts to ensure we continue to capture as much margin as possible.”