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We report the observation of an anomalous magnetoresistance in extremely dilute quasi-one-dimensional AuFe wires at low temperatures, along with a hysteretic background at low fields. The Kondo resistivity does not show the unitarity limit down to the lowest temperature, implying uncompensated spin states. We suggest that the anomalous magnetoresistance may be understood as the interference correction from the accumulation of geometric phase in the conduction electron wave function around the localized impurity spin.

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