For June delivery, gold is lower by 0.12% to $1,236.20 per ounce on the COMEX this morning.
The price of the metal is dropping today as some investors booked profits after yesterday's 1.7% rally, spurred by Federal Reserve Chair Janet Yellen's cautious tone regarding future interest rate increases, Reuters reports.
"Yellen surprised the market by her dovish comments after more aggressive comments from other FOMC members last week," Saxo Bank's head of commodities research Ole Hansen told Reuters, "The combination of a weaker dollar, reduced rate hike expectations and lower bond yields remain the key positive drivers for gold."
The central bank chair said the slowdown in China and tumbling oil prices help justify a slower pace for interest rate hikes.
Non-interest paying gold struggles to compete with assets that offer a yield when interest rates are higher.
Separately, Jefferies raised its price target on Barrick Gold stock to $15 from $13.50 and maintained its "hold" rating.
"After hugely underperforming the gold price and the mining sector, we now believe Barrick has a more appropriate valuation," the firm wrote in an analyst note.
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.
This is driven by a few notable weaknesses, which 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 covered.
The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and generally high debt management risk.
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