Barrick Gold Corporation (NYSE:ABX) in the gold rush

Posted by Steve Raasch August 15, 2013 0 Comment 970 views

On Wednesday, GLD futures for Dec (which is the most-active contract) rose $12.90 and closed at $1.333.40/ounce while SLV futures for Sept rose 44 cents and finished at $21.79. Both these precious metals just about managed to scramble higher against the most current inflation-report released by the United States Bureau of Labor Statistics that was much weaker than expected.

Across the board, gold miners navigated the S&P 500 dip and headed northward. On Wednesday, Barrick Gold Corporation (NYSE:ABX) climbed 5.22% while there was a 6.2% rise in Newmont Mining stock. First majestic rose by almost 10%.

About ABX

ABX is involved in producing and selling gold. It also explores and develops mines. In addition, the company produces copper. This mining takes place at the Lumwana and Zaldivar mines. Barrick Gold also holds a Nickel development project that is situated in Africa and it has other interests as well.

The gold rush

In July, the producer-price index for finished goods that is seasonally adjusted was the same as it was in June. This comes in the wake of a 0.8% rise in June and a 0.5% rise in May and is in line with the projection was that it would rise 0.5%, this month. On the year, producer price-growth came down from 2.5% in June to 2.1% in July. Though there may be a softening in the producer price-growth, the headline-inflation projections are still aiming for 2% in the near-term.

The PCE inflation expectations that are gathered from the United States Federal reserve policymakers have called for a headline rate of 2% by 2015 but will have a slightly reduced core-rate. In a speech, James Bullard, the President of the Federal Reserve Bank of St. Louis noted that inflation has dropped since March which also lends hope that Quantitative Easing will not be pulled-away too soon.

About Steve Raasch

Steve Raasch is a breaking news reporter for GDP insider. During his nearly two decades of editorial experience, Steve has covered a variety of topics including small business, health, personal finance, advertising, workplace issues and consumer behavior. Steve is very passionate about his work. Steve earned a master of arts degree in international relations from the Johns Hopkins University School of Advanced International Studies in Washington.

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