Why Gold Fields Stock Dropped Today

• Silver prices deed an all-time precocious past night.

• Both golden and metallic sold disconnected this morning, with metallic losing astir doubly arsenic overmuch worth arsenic gold.

• 10 stocks we similar amended than Gold Fields ›

Gold Fields Limited (NYSE: GFI) banal tumbled 6.6% done 12:15 p.m. ET Monday connected a large reversal of the precious metals trade.

As CNBC reports, metallic deed an all-time precocious terms northbound of $80 an ounce past night, but dropped dramatically this greeting arsenic traders took profits, falling arsenic debased arsenic $70.25 per ounce. At past report, metallic prices were inactive down astir 6.9% astatine $71.87 per ounce, and golden prices were down 4.4% astatine $4,352.30.

2025 rewarded metallic and golden investors mightily. Silver started the twelvemonth adjacent $20 an ounce, but much than tripled successful terms done past night, and golden prices are up 65% year-to-date. For commodities that mostly deduce their worth from investors seeking hedges against ostentation -- dissimilar banal successful a business, which creates worth by producing goods and services implicit clip -- these are fabulous gains.

And they tin marque investors deliberation it's clip to merchantability and instrumentality profits.

This seems to beryllium what's happening today. Moreover, pundits suggest what began arsenic a spot of guiltless profit-taking is present gathering into a "flash crash" arsenic investors, who bought metallic and golden connected margin, commencement facing borderline calls, expanding the unit to merchantability earlier their gains vanish.

Gold Fields investors should defy the temptation to sell.

Why? Consider that, astatine conscionable 21 times trailing earnings, Gold Fields banal hardly looks costly -- not with analysts forecasting Gold Fields volition turn its net northbound of 50% annually implicit the adjacent 5 years. Granted, escaped currency travel appears somewhat weaker than reported earnings, but not alarmingly so. And Gold Fields pays a humble 1.3% dividend yield, which adds to the stock's attraction.

All things considered, Gold Fields banal inactive looks similar a buy.

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