Why Shares of Barrick Gold Plunged 13% in November
Extending the 5% dip they suffered in October, shares of Barrick Gold (NYSE: GOLD) sank 13% lower in November, according to data from S&P Global Market Intelligence. While the stock's fall is unsurprising considering the drop in the price of gold, it certainly wasn't the only reason motivating investors to leave their positions. The revelation that Berkshire Hathaway chose to pare its position in the gold mining company signaled to investors that perhaps they, too, should look for other investment opportunities.
With Election Day in the rearview mirror and the belief that Joe Biden will bring a less volatile administration to Washington, investors turned away from gold, sending the yellow metal down more than 6% in November. But it wasn't only politics affecting the market's appetite for gold; investors eschewed positions in gold after hearing from drugmakers that they were making considerable progress in their COVID-19 vaccine trials. And since the movements of gold mining stocks and the price of gold are closely correlated, it's unsurprising that shares of Barrick Gold dipped last month.
Image source: Getty Images.
Source Fool.com
