Gold for February delivery is down by 0.52% to $1,068.60 per ounce on the COMEX this afternoon.
Rebounding oil prices offset a stronger dollar, which pushed some stocks in the gold and mining sector higher today, Reuters reports.
The precious metal, which is positively correlated to oil, has recovered from the losses that came after the Federal Reserve's decision to raise interest rates last week, Reuters reports. However, the precious metal has struggled to maintain gains.
"The Fed would be quite keen to continue monetary policy tightening, albeit only gradually over 2016 followed by a faster pace in the following years," Societe Generale said in a note cited by Reuters. The firm mentioned that this would strengthen the dollar and hurt gold.
Gold is more expensive to foreign investors when the greenback is strong.
Barrick Gold is a Toronto-based gold mining company.
Separately, 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. TheStreet Ratings has this to say about the recommendation:
We rate BARRICK GOLD CORP as a Sell with a ratings score of D. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity and generally disappointing historical performance in the stock itself.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 311.2% when compared to the same quarter one year ago, falling from $125.00 million to -$264.00 million.
- The debt-to-equity ratio of 1.26 is relatively high when compared with the industry average, suggesting a need for better debt level management.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Metals & Mining industry and the overall market, BARRICK GOLD CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 35.51%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 309.09% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- Despite the weak revenue results, ABX has significantly outperformed against the industry average of 45.8%. Since the same quarter one year prior, revenues fell by 11.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: ABX