Why Is Hycroft Mining Stock Sinking Friday?

Hycroft Mining Holding Corporation (NASDAQ:HYMC) stock tumbled in Friday’s premarket session, extending Thursday’s 11.53% decline as profit-taking weighed on precious metal prices following their historic rally.

Gold, Silver Pull Back After Record Run

Gold slid more than 7% to below $4,980 per ounce on Friday, extending its pullback from the previous session on profit-taking, according to market data. Despite the retreat, the metal remains on track for a monthly gain of over 15%.

As of Friday, the spot price of gold is trading around $5,040–$5,380 per troy ounce, showing significant volatility after reaching record-high levels. The 52-week price range spans from approximately $2,770 to over $5,590 per ounce, representing an 83.01% one-year gain.

Silver tumbled 17% toward $95 per ounce on Friday, despite posting a remarkable 221.16% gain over the past year. The one-day decline of 11.98% mirrored the broader precious metals selloff, though the metal remains up 32.94% for the month.

High-Beta Gold Exposure Amplifies Volatility

Hycroft Mining operates the Hycroft Mine, an open-pit heap leach operation located approximately fifty-four miles west of Winnemucca, Nevada. Because the company is not yet in full-scale production and controls one of the world’s larger gold-silver deposits, the stock often behaves like a high-beta call option on gold prices, according to a Thursday Benzinga report.

Technical Analysis

Currently, Hycroft is trading 10.8% above its 20-day simple moving average (SMA) and a significant 168.2% above its 100-day SMA, demonstrating strong longer-term strength despite the current pullback. Over the past 12 months, shares have surged an impressive 1821.43%, and they are currently positioned closer to their 52-week highs than lows, indicating a robust long-term trend.

The RSI is at 64.36, which is considered neutral territory, suggesting that the stock is not yet overbought. Meanwhile, MACD is above its signal line, indicating bullish momentum, which could provide support against further declines.

HYMC Price Action: Hycroft Mining Holding shares were down 11.09% at $40.65 during premarket trading on Friday, according to Benzinga Pro data.

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