Why is Barrick Gold stock down?

Barrick gold in argentina

Given that all elements are clearly bearish, it would be possible for traders to trade only short positions in BARRICK GOLD CORP. as long as the price remains below USD 18.31. The bearish target for sellers is set at 16.84 USD. A bearish break of this support would reactivate the bearish momentum. Sellers could then target the support at 15.67 USD. In case of an overcoming, the next target would be the support located at 13.79 USD. However, watch out for bearish excesses that could lead to a short-term correction, although this possible correction will not be tradable.

The price of BARRICK GOLD CORP. is 17.95 USD. The price is down -0.44% on the session with a low of 17.87 USD and a high of 18.25 USD. The spread versus price is +0.45% for the low and -1.64% for the high.

The Central Gaps scanner detects a bullish opening that marks the presence of buyers versus sellers at the open, but not accentuated enough to allow the price to register a gap.

Barrick gold stock

Gold finally seems to be on the verge of a breakout. The precious metal is considered a good hedge against inflation and I believe gold is positioned to make new highs in the coming quarters.

To further my point about inflation, assets on the Fed’s balance sheet expanded from $4 trillion in November 2019 to current levels of $8.7 trillion. This is a clear indication of aggressive expansionary monetary policies. Therefore, the rise in inflation is not surprising.

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Another interesting point of discussion is Bitcoin (CCC: BTC-USD), which has also emerged as a possible hedge against inflation. Money is likely to flow into gold and Bitcoin in 2022 if inflation remains high. However, considering the excess liquidity in the financial system, there appears to be ample upside potential for the precious metal.

In May 2021, NEM shares touched highs of $75.30. However, with the short-term weakness in the gold price, the stock has corrected. I believe current levels are attractive for new exposure.

Buy barrick gold shares

For a business with $788 billion in assets, Barrick’s purchase is tiny. But the overall change is significant. Berkshire doesn’t usually trim positions, Buffett said recently. So even if he’s not personally behind every decision, it all suggests a more widespread pessimism. Buying shares of a gold miner fits: the metal should benefit if rates stay low for long.

It’s a change from 2008, when Buffett emphasized holding on. But if we look at the letters to shareholders, the gloomy tone has precedent. In 1980, he lamented that 12% inflation would kill returns. In 1987, he worried about the large U.S. trade deficit. And in 2001, he said he was “unenthusiastic” about stocks.

Some of it is because of poorly timed investments, such as Kraft Heinz. But central banks have flooded the market with liquidity, and ETFs generate huge herd movements. Investors who follow momentum often outperform those who analyze balance sheets, and are likely to do so for the foreseeable future. Buffett’s wisdom may still be rational…but the markets are not.

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Barrick gold results

The Veladero mine is located in the province of San Juan, in the department of Iglesia, 350 kilometers northwest of the city of San Juan and at an altitude of 4,100 meters above sea level. It currently employs more than 3,800 people, including its own and contracted personnel.[3] On October 2013, Barranquilla Barranquilla was the first company in the country to be awarded a contract for the construction of a new plant.

On October 31, 2013, Barrick announced a temporary slowdown in the construction of the project as a result of the fall in the price of gold and regulatory requirements in Chile.[12] The company reported that it will “update and redefine capital cost estimates and plan the pending development of the project in different phases, with specific schedules, budgets and targets.”[13] The company also announced that it will “update and redefine capital cost estimates and plan the pending development of the project in different phases, with specific schedules, budgets and targets.”[14] Barrick will continue to develop the project in the future.

The mining industry has a preponderant role in the San Juan economy. Of the total number of SMEs in the province, 18% belong to the mining value chain; between 2004 and 2011 exports of precious stones and metals explained more than 80% of the increase in San Juan’s total exports; since the start-up of Veladero in 2005, San Juan’s share in the national GDP went from 0.96% (2004) to 1.29% (2011).[14]

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