The Motley Fool fool.com 02 Aug, 2022 19:00 am

Why Barrick Gold Stock Fell 11% in July

Why Barrick Gold Stock Fell 11% in July
This stock didn't glitter as brightly in investors' eyes last month for a variety of reasons.

On July 19, Matthew Murphy, an analyst at Barclays, reduced the price target on Barrick's stock to $25 from $28.com, Murphy based the price target cut, in part, on the belief that Barrick will continue to face pressure on its margins.As for the analyst's price target reduction, this shouldn't be seen as a major factor in whether investors choose Barrick to add some luster to their portfolios or not.1% higher last month, Barrick's stock tumbled 11%, according to data from S&P Global Market Intelligence.

There's a strong correlation between the movements in the prices of commodities and the stocks of companies that deal in them, so the slide of Barrick's stock was likely expected by those who follow the precious metal.According to management, Barrick will report all-in sustaining costs (AISC) per gold ounce that are 3% to 5% higher on a quarter-over-quarter basis when it reports on the second quarter.

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