Barrick Gold (ABX) Stock Advances on Rallying Gold Prices
NEW YORK (TheStreet) -- Shares of Barrick Gold (ABX) are gaining by 2.23% to $18.33 on Wednesday morning as gold prices trade in the green.
For June delivery, gold is up by 1% to $1,277.50 per ounce on the COMEX this morning.
The price of the precious metal is getting a lift from a weaker dollar today.
Gold is more expensive to foreign currency holders when the greenback is strong.
"This metal remains fundamentally bullish and could be destined to surge towards $1,308 with risk aversion boosting its safe haven allure," Lukman Otunuga, research analyst at FXTM, said in a note cited by MarketWatch.
Additionally, gold is being boosted by expectations that the next U.S. interest rate hike will happen later in the year, Reuters noted.
The non-interest-paying metal struggles to compete with assets that bear a yield when interest rates are increased.
Barrick Gold is a Toronto-based gold mining company.
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.
However, 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
