Barrack Gold (ABX) Stock Closed Higher Despite Lower Gold Prices

Barrack Gold (ABX) stock rose on Friday even though gold prices declined amid speculation that the Fed could raise interest rates this year.
By Kaya Yurieff ,

NEW YORK (TheStreet) --Shares of Barrack Gold (ABX) closed up 0.69% to $20.55 on Friday even though gold prices fell.

Gold prices came under pressure today amid speculation that U.S. monetary policy could be tightened before the end of the year, Reuters reports.

The precious metal is non-interest paying and has difficulty competing with assets that offer a yield when the Federal Reserve raises interest rates.

The central bank will release a policy statement next week after its July meeting.

Additionally, the dollar has gained recently on strong readings on the U.S. labor market and inflation, which has lifted expectations that the Fed will hike rates by the end of the year, Reuters noted.

Gold is more expensive to foreign currency holders when the greenback is stronger.

For August delivery, gold is dropping 0.65% to $1,322.30 per ounce on the COMEX this afternoon.

Barrick Gold is a Toronto-based company engaged in the production and sale of gold, as well as related activities, such as exploration and mine development.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its solid stock price performance, expanding profit margins and good cash flow from operations.

But the team also finds weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: ABX

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