Barrick Gold (ABX) Stock Rises on Higher Gold Prices

Barrick Gold (ABX) stock is climbing on Friday afternoon as gold prices are positioned for a fifth week of gains.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Barrick Gold (ABX) are popping 3.14% to $22.01 on Friday afternoon as gold prices rally.

For August delivery, gold is advancing 1.41% to $1,339.20 per ounce on the COMEX this afternoon.

Gold prices are gaining due to a weaker dollar and the possibility of more monetary policy easing following the U.K.'s decision to exit the European Union last week, Reuters reports.

The yellow metal is more expensive to foreign currency holders when the greenback is strong.

"Gold is rallying as expectations are once again rising for another central bank easing cycle. Could next week's non-farm payrolls stop this? The last two were very weak, but we think misleading and some other U.S. data has been improving," Matthew Turner, an analyst at Macquarie, told Reuters.

"But the Fed's reaction function appears to have changed, and we doubt they have much appetite to raise rates until December," he added.

Gold is non-interest paying and can struggle to compete with assets that offer a yield when interest rates are increased.

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

Loading ...