Hycroft Mining Holding Corp (NASDAQ:HYMC) shares are tumbling on Thursday as precious metals pull back again after a short-lived bounce.
Spot gold fell 0.7% to $4,926.90 per ounce Thursday, giving back the strong gains from Tuesday and Wednesday, when it jumped 6% and 2%. Silver dropped 10% to $79.60 per ounce after climbing 6% on Wednesday and 7.6% on Tuesday, CNBC reported.
The pullback follows last Friday's historic sell-off, which sent gold down 9% and pushed silver nearly 30% lower — the steepest one-day decline for silver futures since 1980. That initial plunge was tied to the nomination of Kevin Warsh as the next Federal Reserve chair, a move that eased concerns about central bank independence.
Some money briefly rotated back into precious metals earlier this week as investors moved out of tech and software stocks.
Mixed Analyst Views
Despite the volatility, major banks remain upbeat on gold while urging more caution on silver.
UBS strategists described the recent swings as "normal volatility within a continuing structural uptrend, rather than the end of the bull market." The firm expects gold to reach $6,200 next month before easing to $5,900 by year-end.
Goldman Sachs also sees room for further upside, highlighting "significant upside” potential to its $5,400 forecast for December 2026. Bank of America projects gold could climb to $6,000 in the coming months.
Silver, however, is drawing more skepticism due to its extreme price swings. UBS said silver would need to fall further "to make the metal attractive," noting that an asset with 60% to 120% volatility requires an expected return of 30% to 60% to justify a long position.
What Do HYMC Technicals Show?
Hycroft Mining is currently trading below its key moving averages, which suggests a bearish sentiment in the short term. The stock is trading 12.3% below its 20-day SMA, indicating that it may be struggling to maintain momentum after a recent decline.
The RSI is currently at 53.62, which is considered neutral, suggesting that there isn’t strong momentum in either direction, and traders should watch for any signs of a shift towards overbought or oversold conditions. Moreover, MACD is below its signal line, indicating bearish pressure on Hycroft Mining.
Hycroft Mining’s stock has shown an impressive 12-month performance, up 1,235%. This remarkable gain highlights the potential for long-term growth, but the current technical setup indicates that traders should approach with caution as the stock navigates through recent volatility.
HYMC Price Action: Hycroft Mining shares were down 11.70% at $34.71 at the time of publication on Thursday, according to Benzinga Pro.
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