The Rio Tinto Limited (ASX: RIO) share price is having a day to forget on Monday.
In early afternoon trade, the mining giant's shares are down a disappointing 5.5% to $88.14.
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Why is the Rio Tinto share price falling?
Investors have been selling Rio Tinto and other mining shares on Monday following a broad market selloff driven by concerns that a rising rates could trigger a global recession.
If one were to occur, it could lessen demand for commodities and weigh on prices.
US investors certainly appear to believe that a recession is imminent. They sold down the Rio Tinto share price by 5.5% on Wall Street on Friday night. Which, coincidentally, is the same margin by which the company's locally listed shares have fallen today.
It isn't just the Rio Tinto share price that is under pressure. BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and South32 Ltd (ASX: S32) shares are all falling heavily today.
This has led to the S&P/ASX 200 Materials index tumbling a sizeable 4.5% today.
Should you buy the dip?
Goldman Sachs may see the weakness in the Rio Tinto share price as a buying opportunity.
Its analysts currently have a buy rating and $121.50 price target on the company's shares. This implies potential upside of almost 38% for investors over the next 12 months.
In addition, the broker is forecasting very generous fully franked dividend yields of 9%+ through to FY 2025.
This could mean big returns for investors if Goldman Sachs is on the money with its recommendation.
