What's Happening With
Rising gold prices have pushed shares of the major gold producers such as Barrick Gold (ABX) higher, and gold prices are likely to build on recent gains, and push ABX to a new 52-week high. The stock has trended higher all year, and is currently up 197% on the year.
ABX was recently trading at $21.97, just $0.17 below its 12-month high and $16.06 above its 12-month low. Overall technical indicators for ABX are bullish, and the stock is in a strong upwards trend. The stock has recent support above $19.00, and is trading above recent resistance. Of the 15 analysts who cover the stock, three rate it a “strong buy”, 11 rate it a “hold”, and one rates it a “strong sell”. The stock receives S&P Capital IQ’s 4 STARS “Buy” ranking.
There is a lot of uncertainty regarding the long-term impact of Britain’s recent vote to leave the European Union, but already economies around the globe are discussing the possibility of interest rate cuts. Gold prices were already trending higher before the vote, but following the vote, gold has moved even higher, and taken shares of the major gold producers with it. ABX has recently hit a new 52-week high, and shares are likely to move even higher as traders rush into commodities in reaction to increased chatter on fiscal easing for the world’s biggest economies. ABX is up sharply on the year, but with so much bullish sentiment in commodities at this time, ABX will likely build on recent gains, and trade to a new 52-week high.