What is behind Barrick Gold recent drop in value today

Traders Union
All News
Financial News
Barrick Gold slides 3.14% today

Highlights

Barrick Gold secured a ten-year extension of its Loulo-Gounkoto mining license in Mali after resolving a major dispute and withdrawing from World Bank arbitration.
Loulo-Gounkoto generated approximately $900 million in 2024 revenue, underpinning Barrick's strong Q4 financial results and increased dividends.
Barrick Gold (ABX) is trading at $63.27 with solid medium- and long-term bullish signals; key resistance lies at $66.97 and support at $63.65.

Mali license extension boosts revenue outlook after dispute resolution

Barrick Gold has secured a ten-year extension to its Loulo-Gounkoto mining license in Mali after resolving a significant dispute with the government. This agreement followed a two-year negotiation period and required Barrick to withdraw its case from World Bank arbitration. The renewal is critical for Barrick as the Loulo-Gounkoto operation generated about $900 million in revenue in 2024, with the company also posting strong fourth-quarter financial results and a notable increase in dividends.

Anton Kharitonov, expert at Traders Union, observes that Barrick Gold’s price action is under short-term pressure below the MA-20 and MA-50, reflecting waning bullish momentum. He notes that mixed oscillators and recent intraday volatility reveal fragile technical stability despite longer-term trends staying positive. Fundamental news about the license extension is overshadowed by unresolved downside risks following the recent sell-off. Kharitonov warns that persistent bearish divergence and sellers’ dominance could trigger further corrections if the $63.27 support breaks. "Despite some headline positives, current technicals urge caution until a clear bullish reversal is confirmed."

Viktoras Karapetjanc, expert at Traders Union, highlights Barrick Gold’s constructive outlook after the crucial ten-year mining license extension in Mali. He believes the strong revenue contribution from Loulo-Gounkoto and robust dividends reinforce a bullish structure for the stock. With weekly indicators and macro stability supporting further growth, Karapetjanc sees multiple setups for continued upside, especially if price breaks above $66.97. "I expect the market to reward recent operational achievements with further price appreciation from these levels."

Bearish price action overshadows mixed technical signals and volatility

Momentum signals remain mixed. The daily ADX is neutral to slightly bullish, but the MACD has turned bearish. The RSI prints 51.3, reflecting neutral conditions, while the Stoch RSI indicates strong bullishness and the CCI remains neutral. BBP signals recent overbought conditions after active buying earlier in the session, but the price has since slid by 3.14% with pronounced intraday volatility, suggesting sellers retain control for now. Price action sits near the lower end of today's range, showing bearish divergence against a backdrop of some bullish undertones in several oscillators.

Previously it was reported that Barrick Gold is facing short- and medium-term downside pressure as the stock trades below its 20-day moving average and hovers around the 50-day, although it remains well above the 200-day average, indicating a resilient long-term uptrend. Momentum indicators such as RSI, MACD, and CCI point to ongoing weakness and oversold conditions, with immediate support near $63 and dynamic resistance around $67.

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

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.