Barrick Gold: Ready for the rebound?

Particularly piquant: On the 13th this march at the end of trading, there were obviously emergency sales, which caused the junior goldmine ETF GDXJ to plunge by 25 percent. No buyers were found on the other side. So is the situation hopeless? Barrick’s stock plunged ten percent yesterday, dropping to last November’s lows. Since the chart is now clearly oversold from a technical point of view, first buyers are likely to find themselves in this area. At least from a technical point of view, a countermovement is now overdue and can start every day.

A jump back above the $ 18.50 mark would at least tilt the short-term picture in favor of the bulls again. Operations are still going smoothly at Barrick. With a gold price of currently around $ 1,585, the group earns splendidly. At Barrick, the cost is less than $ 900 an ounce (all-in sustaining (AISC)). The group thus has an excellent margin. The panic of the past few days has been exaggerated, especially since Barrick Gold’s balance sheet has improved significantly in recent months. Net debt will continue to decrease in the current year. Barrick is even flirting with being net debt free. Barrick Gold – and many other mining companies – should see buying opportunities in the coming days. Countercyclical investors should get ready.