Boston, MA 10/18/2013 (wallstreetpr) – Like its peers in gold production business, Barrick Gold Corporation (USA) (NYSE:ABX) has been sliding to unknown, yet unwanted territory. And for this, investors shuddered and they have been leaving in their drove. But their landing station isn’t the rivals’ stock, no, everything gold has for most investors now become radioactive. Nobody wants to burn his fingers with gold stock when reports all around are predicting doom.
As investor confidence waned, ABX sought to employ every trick in the books to get itself up and running, but all such efforts have ended up consuming more than they can give in return. But just when the mandarins at the ABX where about to start herding cats, now light has started showing up at the end of the tunnel.
On Thursday, October 17, gold prices behaved in accordance with every miner’s dream, they jumped. The Thursday jump in the price of the yellow premium metal wasn’t big actually; it was welcome across the board. Of course, Sometimes a half a loaf is better than none. Since April 2013, gold prices jumped 3%, equivalent of $40 per ounce on Thursday and now the new price is $1,323 an ounce.
The surprise rise in gold value did not just happen out of nothing. It had its roots in the delayed reduction in stimulus by Fed following the deal in Washington.
While the Washington deal essential hurts the dollar, it comes as a blessing for the gold market – in fact, it’s a much waited boost in good return.
So far this year, the price of gold which has left miners like ABX vulnerable, has gone down by 21%. But in contracts, gold stocks have had a much steeper decline beyond that of gold in the global market.
Following the Thursday’s gain in gold value, ABX noted a positive activity of its stock in the exchange market, gaining 4.99% in share value. The company is now worth $18.52 billion in market cap.