NEW YORK (TheStreet) -- Shares of Barrick Gold (ABX) are down by 1.58% to $11.51 in early afternoon trading on Friday, as the dip in the price of gold is driving some mining and related stocks lower today.
Strong jobs data for the month of May from the Commerce Department is contributing to the precious metal's drop.
Gold for August delivery is lower by 0.60% to $1,168.10 per ounce on the COMEX this afternoon.
The Commerce Department said 280,000 new jobs were added in May, the largest spike since the end of 2014 and higher than the consensus estimate of economists polled by The Wall Street Journal of 225,000.
Improvement in the labor market can clear the way for the Fed to hike up interest rates, which is expected to happen in the second half of this year, The Journal added. The publication noted that a rate hike can be bad news for gold, a non interest earning asset, as the precious metal can struggle to entice investors away from interest bearing assets when rates rise.
Separately, TheStreet Ratings team rates BARRICK GOLD CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate BARRICK GOLD CORP (ABX) a SELL. This is driven by multiple weaknesses, 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 generally high debt management risk, weak operating cash flow, generally disappointing historical performance in the stock itself and unimpressive growth in net income."