Why is the Chalice Mining (CHN) share price plunging on Friday?

The mining company’s stock is suffering today. Could this be why?

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The Chalice Mining Ltd (ASX: CHN) share price is plummeting today despite no news having been released by the company.

Though, the company’s share price might be suffering alongside the price of gold.

If that’s the case, Chalice isn’t alone in its struggles today. The ASX gold sector is a sea of red, with the Perseus Mining Limited (ASX: PRU) share price leading the plunge among the large caps, sporting a 6.6% fall.

The Chalice Mining share price is doing slightly better, having fallen 4.71% to trade at $7.48.

While Chalice Mining isn’t a pure-play gold producer, it currently holds a number of gold projects. However, it’s planning to spin off its Australian gold assets before the end of the year.

Let’s take a closer look at what could be weighing on the company’s share price today.

What’s weighing on Chalice’s stock?

The Chalice Mining share price is sliding today despite the company maintaining its silence. The company’s share price is seemingly being dragged down alongside the price of gold.

Over the last 24 hours, the price of gold has plunged from around US$1,795 an ounce to US$1,758.95 per ounce.

According to precious metal specialist and retailer Kitco, gold is struggling due to the United States’ retail sector gaining strength. The sector’s recovery could forebode a hawkish US Federal Reserve ahead of its upcoming interest rate announcement.

Though, Chalice’s struggles today could have more to do with market movements than the gold price’s dip.

Yesterday, the company was one of the S&P/ASX 300 Index‘s (ASX: XKO) best performers. The Chalice share price gained 6.3% yesterday for no obvious reason.

Today’s drop could be a correction following yesterday’s surge.

Chalice Mining share price snapshot

Despite today’s dip, the Chalice Mining share price has been performing well lately.

It has gained 74% since the start of 2021. It is also 377% higher than it was this time last year.

Should you invest $1,000 in Chalice Mining right now?

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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