The De Grey Mining Limited (ASX: DEG) share price is on track to finish the week deep in the red.
While the gold miner's shares are currently down 1.71% to $1.01 today, this represents a fall of almost 8% for the week.
The ASX is digesting Wall Street's losses yesterday following the decision by the United States Federal Reserve to lift interest rates.
As a result, the broader market is treading lower along with a number of gold mining companies.
The S&P/ASX 200 Index (ASX: XJO) is falling 2.12% to 6,558.2 points.
Newcrest Mining Ltd (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) are down 0.36% and 1.06%, respectively.
Let's take a look at why the De Grey share price is losing more of its shine.
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Why are De Grey shares being hit the hardest?
Investors are continuing to sell off De Grey shares as the market reacts to the US central bank's rate hike.
The S&P/ASX All Ordinaries Gold Index (ASX: XGD) is down 0.86%, which is now touching 5% lower for the week.
While the Aussie stock market is now pricing in the latest move by the Fed, it's De Grey shares that are losing most of their shine.
This is because the company is much smaller than its peers, and is also being targeted by short-sellers.
As my Motley Fool colleague James pointed out, De Grey sits within the top 10 of ASX-listed companies that have high short levels.
The last short-sale data report indicated De Grey has 7.58% of its shares that are being shorted.
In addition, gold prices have deteriorated to around US$1,670 per ounce following the US Fed Reserve decision.
When interest rates increase, investors tend to shift investments away from the yellow metal into treasury bonds.
De Grey share price summary
It has been a whirlwind year for De Grey shareholders.
The company's shares touched a 52-week high of $1.465 earlier this year before plunging 50% in the following months.
Year to date, the share is down 17%.
Based on today's price, De Grey presides a market capitalisation of approximately $1.45 billion.
