shares of Barrick Gold Corporation (NYSE: GOLD) One of the world’s biggest gold producers, has lost 24% of its value since mid-April, although they still remain up about 6% year-on-year. There are a few factors that have weighed on the stock lately. First, gold prices have fallen almost 10% over the past few months from $2,050 an ounce in mid-March to the current level of $1,825, with prices also down marginally year-on-year. The decline occurs when the Federal Reserve raises interest rates at a more aggressive pace to curb rising inflation. Higher rates led to a stronger US dollar and improved yields from Treasuries — both considered safe-haven assets — are putting pressure on the price of non-yielding bullion. Barrick’s gold production in Q1 also fell 10% from last year, due to lower production at the Carlin and Cortez mines in Nevada, while the company’s profits were also under some pressure due to supply chain issues and increased costs related to Covid. I have come. -19.
However, we think these developments could ultimately bode well for the precious metals. Indicators point to a near-term recession in the United States, along with the yield curve, which is seen as a fairly reliable predictor of an economic downturn. Consumer confidence in the US is also falling, as high inflation puts pressure on the household budget. Geopolitical uncertainties have been rising since Russia’s ongoing invasion of Ukraine. Trefis believes that these factors are likely to support gold prices until global macroeconomic and geopolitical stability is achieved. Given that more than 90% of Barrick’s sales in 2022 came from gold, the stock could rally if investors eventually seek a safe haven. Separately, Barrick’s increased focus on copper is also likely to be beneficial to the company in the long run, as demand for the metal remains high as the global economy moves toward green energy solutions and electric vehicles. Barrick’s revenue from copper grew by more than 75% in 2021 and about 37% in 2022. The company may also have an edge over other miners, given that copper often accompanies gold in large deposits, and Barrick has proven to be adept at working as well. In developing markets such as Africa and Pakistan, where other Western players have been reluctant to venture.
we guess Barrick Gold Valuation At $25 a share, that’s about 25% ahead of the current market price. View our analysis Barrick Gold Revenue For more information on the company’s business model and major revenue streams.
Stock prices across sectors have fallen sharply in recent months and we are now in a bear market for the first time since March 2020, when the COVID-19 outbreak triggered a market crash. We capture key trends in the Dow during and after major market crashes in our interactive dashboard analysis.market crash comparison,
invest with traffic Market Beating Portfolio
see all traffic price estimate
Credit: www.forbes.com /