Benzinga - by Surbhi Jain, .
Investors in Barrick Gold Corp (NYSE:GOLD), the gold and copper miner, are closely monitoring a development occurring on the stock’s price chart, a technical indicator known as the Death Cross.
This bearish signal, a crossover of the 50-day moving average (yellow line above) moving below the 200-day moving average (blue line above), has traditionally been associated with potential downward trends in stock prices.
Over the past year, Barrick Gold’s stock has seen fluctuations that have closely aligned with the movements in spot gold prices. While spot gold has recovered from its October lows and is now trading with a more bullish momentum, the occurrence of a death cross on Barrick’s chart presents further uncertainty for shareholders.
Barrick Gold Stock Made A Death Cross
Barrick Gold stock has been trending downward for the most part of 2023. The stock has underperformed gold spot price performance and the U.S. broad equity market as tracked by the S&P 500 Index. While Barrick Gold stock is down 21% over the past year, gold spot price has gained 7.5% and the S&P 500 is up over 20%.
2024 hasn't been great so far either – with the stock down over 22% YTD.
On Feb. 14, the company reported its fourth-quarter earnings.
Q4 Earnings Shone Bright
Copper production rose 1% to 113 million pounds, with an average realized copper price of $3.78 per pound. Adjusted EPS exceeded expectations at 27 cents.
Related: Barrick Gold’s Q4: Earnings Shine, Buyback Glitters & More
The results showcase robust performance in both gold and copper segments, contributing to a strong Q4 financial outcome.
Analysts See Over 90% Upside
However, Technical Indicators Are Bearish
Since technical indicators are not foolproof, they must be considered alongside other fundamental factors.
It remains to be seen whether the death cross will materialize into a sustained downward trend, or if the company can deliver on analyst expectations.
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