Barrick Shares Tumble as Trump's Fed Pick Eases Inflation Fears, Gold Retreats
Shares of Barrick Mining Corporation (NYSE: B) tumbled nearly 10% in midday trading Friday, a move directly tied to a broad sell-off in the precious metals market.
The catalyst wasn't company-specific—Barrick is scheduled to report earnings next week—but macroeconomic. The spot price of gold fell roughly 9%, its steepest single-day decline in months. This plunge followed President Trump's announcement that he would nominate former Fed Governor Kevin Warsh to chair the Federal Reserve.
Gold, traditionally a haven asset, had surged approximately 75% over the past year amid concerns that a second Trump administration might pursue policies fueling inflation and dollar weakness. A significant fear was that Trump would install a pliant Fed chair willing to cut rates prematurely, potentially overheating the economy.
"The nomination of Kevin Warsh is being read as a signal of continuity and independence for the Fed," said market analyst Rebecca Cho of Sterling Insights. "His background at the Fed under Bush and on Wall Street with Morgan Stanley reassures institutional investors that monetary policy won't be dictated by political whims. That reassurance is toxic for gold's near-term momentum."
Historical parallels are being drawn to the 1960s and 70s, when political pressure on the Fed contributed to stagflation. Warsh's nomination appears designed to avoid that scenario, leading investors to unwind massive gold positions that had been built as an "insurance policy."
Despite the day's drop, Barrick enters its February 5 earnings report from a position of strength. Gold prices are still up about 26% since the start of Q4, which should translate directly to robust quarterly profits. Analysts will also be keen for updates on Barrick's Fourmile Project, hailed by the company as a potentially transformative discovery.
Market Voices: Reaction to the Sell-Off
Michael R. (Portfolio Manager, Boston): "This is a healthy correction and a rational market response. The gold run was pricing in a worst-case, inflation-spiral scenario. Warsh's nomination doesn't eliminate all risks, but it recalibrates the probability. Barrick's fundamentals are stronger than ever at these price levels."
Sarah Chen (Retail Investor, Austin): "It's infuriating. The entire market moves on a single nomination? This feels like algorithmic overreaction. Mainstream candidate or not, the structural pressures for higher inflation—deficit spending, deglobalization—haven't vanished. Today's panic-selling is short-sighted."
David P. (Chief Economist, MidWest Trust): "The focus now shifts to Barrick's cost guidance and project pipeline. The gold price tailwind is known. The market wants confirmation that management can deliver operational excellence and growth regardless of daily commodity volatility. Next week's call is crucial."
Disclosure: This is an independent market analysis. Investors are advised to conduct their own research. The Motley Fool Stock Advisor service, for instance, recently listed its top 10 stock picks, which did not include Barrick Mining.