Barrick Gold (ABX) Stock Up on Higher Gold Prices
NEW YORK (TheStreet) -- Shares of Barrick Gold (ABX) are inching higher by 0.15% to $19.40 on Monday morning as gold prices trade in the green.
For June delivery, gold is advancing by 0.27% to $1,294 per ounce on the COMEX this morning.
Earlier this morning, gold rose above $1,300 per ounce for the first time since January 2015 amid speculation that central banks in the U.S. and Europe will keep interest rates low, prompting demand for the yellow metal, Bloomberg reports.
Last week, the Federal Reserve left interest rates unchanged. The non-interest-paying metal struggles to compete with assets that offer a yield when rates are hiked.
"We believe that there's a lot of things that are ripe for precious metals right now: a low interest-rate environment, interest-rate expectations backing down again and we have a weaker dollar," Chris Gaffney, president of EverBank World Markets, told Bloomberg.
Gold is more expensive to foreign currency holders when the greenback is strong.
"We believe this is just the start of a push higher for the precious metals," he added.
Barrick Gold is a Toronto-based gold mining company.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D+ on the stock.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high 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
