Did Barrick's De-Hedging Call The Top In Gold?

The price of gold plunged around 5% on Friday, though more significantly the volume was insanely huge. Combined with the fact that the stock market was up (mildly), there’s a sense among many that the action was some kind of a sign of a top.

If you’re an investor in big-time miner Barrick Gold (ABX) — which fell 8.88% on Friday — you have to be wondering whether they might have mis-timed their dehedging.

It was on Tuesday that the company announced it had fully eliminated its hedge book, and that its earnings would be nakedly exposed to the price of gold. The stock initially popped on the news — yay, leveraging up against a bubblicious asset! — but if Friday’s selloff is the start of a real move, the timing of Barrick’s decision could not have been worse.

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