Anglogold Ashanti Plummets 7.15% Amid Precious Metals Sell-Off: Is This a Buying Opportunity or a Warning Sign?

Summary
• Anglogold Ashanti (AU) trades at $84.72, down 7.15% from its previous close of $91.25
• Intraday range spans $83.79 to $87.18 amid sector-wide profit-taking
• Analysts raise price targets to $92–$131, but gold and silver prices crater post-record highs
• Newmont (NEM), sector leader, falls 5.58% as gold equities tumble

Anglogold Ashanti’s sharp intraday decline mirrors a broader selloff in precious metals, driven by profit-taking after historic rallies in gold and silver. With analysts bullish on long-term fundamentals but short-term volatility intensifying, investors face a critical juncture: is this a tactical entry point or a cautionary correction?

Precious Metals’ Parabolic Rally Reverses as Margin Calls Intensify
Anglogold Ashanti’s 7.15% intraday drop stems from a cascading selloff in gold and silver following record highs. Silver, which surged over 150% in 2025, collapsed 8% post-peak, while gold retreated 4.3% from its $4,530 high. The sell-off accelerated as the CME Group raised margin requirements for silver futures, forcing leveraged traders to liquidate positions. Analysts warn of a 'flash crash' scenario, with margin calls amplifying downward pressure. Anglogold’s 20.5x P/E and 2.2% yield make it one of the sector’s cheapest plays, yet short-term volatility reflects speculative overreach in a market driven by margin-driven bets.

Gold Sector Reels as Newmont Trails Anglogold’s Slide
The gold sector is in freefall, with Newmont (NEM) down 5.58% and Agnico Eagle (AEM) also underperforming. Anglogold’s 7.15% drop outpaces sector peers, reflecting its dual exposure to gold and silver. While Newmont’s production costs and operational scale offer some stability, Anglogold’s higher leverage to silver prices amplifies its volatility. Analysts note that gold’s 65% YTD gain and silver’s 150% surge have created a fragile equilibrium, with today’s selloff exposing overbought conditions across the sector.

Bearish Options and Technical Levels to Watch in a Volatile Market
• 200-day MA: $57.19 (far below current price)
• 50-day MA: $83.87 (near support)
• RSI: 69.45 (overbought but not extreme)
• MACD: 2.99 (bullish divergence)
• Bollinger Bands: Upper at $91.43, Middle at $84.98, Lower at $78.53

Anglogold’s price action is caught between short-term bullish momentum and long-term bearish exhaustion. Key support at $84.23–$84.50 (30D support) and resistance at $91.43 (Bollinger Upper) define the immediate trading range. The 7.15% drop has created a potential entry for contrarians, but volatility remains high. For leveraged exposure, consider the following options:

• AU20260116P80 (Put): Strike $80, Expiry 2026-01-16, IV 48.32%, Leverage 48.35%, Delta -0.28, Theta -0.061, Gamma 0.036, Turnover $25,722
- High leverage ratio (48.35%) and moderate delta (-0.28) suggest strong downside potential. Theta decay (-0.061) and gamma (0.036) indicate sensitivity to price swings. Under a 5% downside scenario (ST = $79.98), payoff = $0.02 (K - ST = $0.02).
• AU20260116P85 (Put): Strike $85, Expiry 2026-01-16, IV 45.59%, Leverage 22.99%, Delta -0.49, Theta -0.053, Gamma 0.045, Turnover $23,518
- Moderate leverage (22.99%) and high delta (-0.49) position this as a mid-risk bearish play. Theta (-0.053) and gamma (0.045) suggest controlled decay and responsiveness. Under a 5% downside (ST = $79.98), payoff = $5.02 (K - ST = $5.02).

Aggressive bears may consider AU20260116P80 into a breakdown below $84.23, while AU20260116P85 offers a safer entry if the $85 level holds.

Backtest Anglogold Ashanti Stock Performance
After experiencing a -7% intraday plunge from 2022 to the present, AU has shown a generally positive performance. The backtest data reveals that the 3-day win rate is 52.58%, the 10-day win rate is 57.32%, and the 30-day win rate is 64.54%, indicating that AU tends to recover and even surpass its previous levels in the medium to long term. The maximum return during the backtest period was 11.93%, which occurred on day 59, suggesting that while there is some volatility, AU can deliver decent returns after a significant dip.

Anglogold Ashanti at a Crossroads: Buy the Dip or Ride the Correction?
Anglogold Ashanti’s 7.15% intraday drop reflects a market correction rather than a fundamental shift. Analysts remain bullish on 73% earnings growth in 2026, but short-term volatility is likely to persist as speculative positions unwind. Key levels to watch include $84.23 (30D support) and $91.43 (Bollinger Upper). Sector leader Newmont (NEM) fell 5.58%, underscoring the sector’s fragility. Investors should monitor gold prices and margin call activity, with options like AU20260116P80 offering leveraged bearish exposure. For now, watch for a breakdown below $84.23 or a rebound above $87.18 to define the next move.