Selling pressure pushes Barrick Gold lower in today trading

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Barrick Gold slides 3.26% today

Highlights

Barrick Gold reported strong quarterly earnings, driven by higher gold prices, despite a 19% year-over-year decline in Q4 consolidated gold production and rising operational costs.
The company announced a 140% dividend increase to $0.42 per share, payable March 16, while a planned North American gold asset spin-off faces resistance from Newmont.
The current price of $64.39 trades just below the MA-20 at $65.72, with technicals signaling possible sideways movement between $65.43 and $66.26 amid high volatility.

Dividend hike and copper gains offset by cost pressures, mine disruption

Barrick Gold reported strong quarterly earnings, supported by higher gold prices, though rising operational costs have weighed on profit margins. The company's consolidated gold production declined approximately 19% year-over-year in the fourth quarter, impacted by a temporary suspension at the Loulo-Gounkoto mine. Barrick also announced a 140% increase in its quarterly dividend to $0.42 per share, with payment set for March 16 and a record date of February 27. A planned spin-off of North American gold assets faces resistance from joint venture partner Newmont, while copper continues to grow in importance, contributing about 30% to EBITDA.

Anton Kharitonov, expert at Traders Union, sees Barrick Gold's price action as mixed with both technical and fundamental vulnerabilities. He notes the asset is stuck between MA-20 and MA-50, while momentum indicators send conflicting signals amid ongoing volatility. The expert highlights declining gold production and rising operational costs, stressing that dividend growth may not offset structural headwinds. Kharitonov is cautious on short-term upside likelihood given recent price pressure and unresolved partner disputes over the asset spin-off. He states, "Fragile technicals and operational risks mean this rally could well falter, so capital preservation should be the focus here."

Viktoras Karapetjanc, expert at Traders Union, believes Barrick Gold maintains a bullish structure after strong quarterly earnings and a sharply increased dividend. He points to the company's robust cash return policy and copper's rising contribution as key positives for forward growth. Karapetjanc notes that despite temporary production setbacks, the market offers multiple setups for further gains, especially with an 80%+ probability for price appreciation ahead. He says, "Dividend momentum and copper expansion support further upside — I expect sustained growth in the coming sessions."

Mixed momentum signals as dynamic resistance and intraday lows converge

Technically, the price of $64.39 sits just below the MA-20 at $65.72 and above the MA-50 at $64.17, with strong medium- and long-term support well above the MA-200 at $44.20. The Ichimoku Kijun at $66.97 presents the nearest dynamic resistance, while the MA-50 acts as immediate support. Momentum signals are mixed: while the MACD indicates a strong sell, the ADX is neutral, and the RSI is at 53.74, not reflecting clear overbought or oversold conditions. However, Stoch RSI and BBP both signal overbought, and CCI remains neutral, highlighting potential volatility ahead with the price near today’s low and intraday pressure prevalent.

Last time, analysts noted that Barrick Gold Corporation is trading just below its 20-day moving average, while remaining above the 50-day and 200-day averages, indicating short-term selling pressure amid intact medium- and long-term support. Despite mixed momentum signals—bearish daily MACD and ADX against oversold oscillators—key support is seen around the 50-day average, with dynamic resistance near $67, as divergence may hint at a potential reversal but sellers continue to dominate intraday action.

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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