Gold Mining Giants Face Bearish Signals as Stocks Decline

Two major mining companies, Barrick Gold Corp GOLD and Newmont Corp NEM, are experiencing a decline in their stock prices, recently indicated by a Death Cross—a technical pattern that occurs when the 50-day moving average drops below the 200-day moving average.

This trend raises concerns for those who anticipated a recovery in these miners’ fortunes.

Barrick Gold: Battling Below Key Averages

Chart created using Benzinga Pro

Barrick Gold’s stock has dropped 11.97% year-to-date, currently trading at $15.65. This price is below key moving averages, including its 20-day average of $16.53 and its 50-day average of $17.86.

Though the Relative Strength Index (RSI) sits at 34.24—approaching oversold conditions—the MACD indicator shows a negative reading of 0.61, reinforcing the bearish outlook.

On a brighter note, the eight-day simple moving average (SMA) at $15.64 offers a slight bullish sign, as the stock hovers just above this short-term benchmark. Nevertheless, underlying issues such as geopolitical concerns and rising U.S. Treasury yields continue to pressure gold prices.

Read Also: Newmont Lays Off Senior Employees Pursuing More Cost Controls

Newmont Corp: Struggling in a Tough Market

Chart created using Benzinga Pro

Newmont’s performance mirrors Barrick’s struggles, with a 6.89% decline year-to-date. The current stock price is $38.09, which is also below its 20-day ($40.24), 50-day ($44.27), and 200-day ($44.86) SMAs—indicative of a similar bearish outlook.

The MACD’s negative score of 1.65, coupled with an RSI of 32.28, signals potential further declines as selling pressure increases.

Despite traditionally high demand for gold in uncertain times, Newmont and Barrick have not benefited from this trend. Factors such as a stronger U.S. dollar and rising Treasury yields have diminished gold’s attractiveness, hampering these stock prices further.

Outlook: Searching for Recovery Amid Challenges

Given the current climate of geopolitical uncertainty and strong economic indicators in the U.S., Barrick and Newmont’s recent performance highlights significant challenges. The Death Cross signals present a cautionary tale for investors.

Until market conditions improve or gold prices demonstrate a recovery, these mining firms may continue facing downward pressures.

Read Next:

Photo: Shutterstock