Why Barrick Gold Stock Fell 11% in September
The shares of Barrick Gold (NYSE: GOLD), one of the largest gold miners in the world, fell a little more than 11% in September, according to data provided by S&P Global Market Intelligence. That was well more than peer Newmont Goldcorp, which only dropped 5%. Both companies had one headwind in common, but Barrick was working on something else that wasn't really much of a help during the month.
Image source: Getty Images.
The common problem that Barrick and Newmont faced last month was a drop in the spot price of gold. As miners, these two companies don't control the value of the product they sell. Copper, which is another key commodity for Barrick, was also weak. So, some of Barrick's price drop is inherently related to the prices of the commodities it sells. But the difference in the stock performance between Barrick and Newmont suggests there's more going on, since Newmont's decline was roughly in line with the drop in gold.
Source Fool.com
