For December delivery, gold was up 2.01% to $1,353.30 per ounce on the COMEX this afternoon as the case for an upcoming interest rate hike lost steam.
On Tuesday, the Institute for Supply Management reported its monthly nonmanufacturing index for August at 51.4, down from 55.5 in July. August's reading indicates that the service sector grew at its lowest level since February 2010, the Wall Street Journal reports.
Federal Reserve Chair Janet Yellen said recently that the case for hiking interest rates has "strengthened" in the past few months.
However, today's weak service sector report could push the Fed to pause on raising interest rates.
Gold fares poorly in high-interest rate environments as investors seek assets that provide yields. The metal jumped today as speculation grew that the Fed might not increase interest rates at its meeting on September 20 and 21.
Additionally, a weaker dollar was boosting gold prices today as the metal becomes less expensive and more attractive to foreign investors.
Barrick Gold is a Toronto-based gold exploration and mining company.
Separately, 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 rated this stock as a "hold" with a ratings score of C.
The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share and increase in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and disappointing return on equity.
You can view the full analysis from the report here: ABX