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

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

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.

A man in a business suit plunges down a big square hole lit up in blue.

Image source: Getty Images

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.

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.

More on Resources Shares

A statuesque woman throws earth in the air in front of a rocky outcrop.
Resources Shares

Why have Liontown shares lost 77% since May?

The lithium miner’s shares have come under heavy selling pressure this year.

Read more »

Sad man sitting at desk and grabbing his head as he looks at a laptop.
Resources Shares

Can Fortescue shares rebound from a 6-year low?

The shares haven't traded at a value this low since June 2020.

Read more »

A woman looks nonplussed as she holds up a handful of Australian $50 notes.
Resources Shares

Is the Fortescue share price a buy for its dividend yield?

Is Fortescue’s dividend yield still attractive?

Read more »

Young successful engineer, with blueprints, notepad, and digital tablet, observing the project implementation on construction site and in mine.
Resources Shares

Would I invest $5,000 in BHP shares now?

The shares are up considerably over the past year. Here's why I'm looking closely at whether it still offers long-term…

Read more »

A young African mine worker is standing with a smile in front of a large haul dump truck wearing his personal protective wear.
Resources Shares

3 ASX mining shares forecast to soar 50% to 150%

Experts are tipping big things for these companies.

Read more »

Sad man sitting at desk and grabbing his head as he looks at a laptop.
Resources Shares

This ASX 200 stock looks like a bargain buy after hitting a fresh 52-week low: Here's why

The shares are now down 40% for the year to date.

Read more »

Mining vehicle at a mine site.
Resources Shares

2 ASX mining companies Barrenjoey predicts could jump 44% to 178%

These Africa-focused companies look undervalued, the broker says.

Read more »

Gold bars on top of coins.
Resources Shares

Gold plunges to a 1-year low, triggering global sell-off. Time to buy gold or miners?

Has gold lost its shine, or is today's sell-off a golden opportunity?

Read more »