Barrick Gold slides today: Key reasons behind the decline

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Barrick Gold slides 3.60% today

Highlights

Barrick Gold reported record Q4 revenue, increased cash flow, and a stronger net cash position, with the board approving a new capital return policy.
Gold production for 2023 reached 3.26 million ounces, copper output met guidance, and shareholder distributions included $1.5 billion in repurchases and a 40% dividend hike.
Technically, Barrick Gold’s price at $62.46 sits below key short-term moving averages but above the MA-200, with upside resistance near $66.97 and high weekly bullish probability.

Dividend policy shift and record performance boost investor returns

Barrick Gold held its Q4 earnings call, posting record revenue, higher cash flow, and a stronger net cash position. The board approved a new capital return policy, committing to pay out 50% of attributable free cash flow with a stated preference for dividends over renewing the annual buyback. Gold production for the full year reached 3.26 million ounces, while copper output met guidance, and shareholder distributions included $1.5 billion in stock repurchases and a 40% dividend increase, with an additional Q4 payout.

Anton Kharitonov, expert at Traders Union, sees current technical signals as weak despite Barrick Gold's strong fundamentals. He highlights that persistent selling pressure and the failure to hold above key short-term averages raise caution. Kharitonov notes that while capital returns and dividend hikes offer some support, momentum and oscillators signal ongoing risk of further dips. Cautious traders should watch the MA-20 and MA-50 levels for any failed recovery. "Until ABX reclaims $66.97 convincingly, I remain skeptical of any sustained upside," he advises.

Viktoras Karapetjanc, expert at Traders Union, believes Barrick Gold's long-term bullish structure remains intact. He points to record revenues, robust cash flows, and an improved capital return policy as clear positives for investors. With gold and copper production hitting guidance and shareholder rewards rising, Karapetjanc sees strong foundations for further growth. He maintains that the next upside move could materialize soon, especially if the price reclaims above $66.97. "Barrick’s fundamentals and positive capital actions support the case for further appreciation in the near term," he states.

Oversold momentum signals as immediate support faces pressure

The asset faces short-term pressure, trading below the MA-20 and MA-50 but comfortably above the MA-200, highlighting a bullish long-term outlook despite immediate weakness. According to Ichimoku analysis, the nearest dynamic support and resistance is near $66.97, as the current price lies below this level. Daily momentum tools reveal ongoing weakness: MACD remains neutral and ADX signals a modest trend, while daily RSI and CCI indicate selling pressure. Stoch RSI and BBP point to oversold conditions, suggesting intraday selling dominates, and volatility is elevated after the open.

Previously it was reported that Barrick Gold is trading below its short-term 20-day moving average but remains above its 50- and 200-day averages, reflecting medium-term selling pressure within a structurally bullish long-term trend. Momentum indicators including the RSI, MACD, and ADX are mixed or neutral-to-oversold, with immediate resistance at the Kijun line and support near the 50-day moving average, suggesting the stock is near a technical turning point.

Source of Data: ABX Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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