Impending Fed taper makes Barrick Gold Corporation (NYSE:ABX) taper
Gold futures for December (which are the most-active contract), dipped $5.90 and closed at $1,412.90/ounce while there was a 30 cent dip to $24.14 in silver futures. Economic reports have been positive and it seems like Fed Tapering will peter out by September. As per the United States Department of Commerce, the economy grew at a 2.5% annual rate in the Q2 in comparison to the initial projection of 1.7%.
On an average, economists have projected a 2.2% rate. Consumer spending was on the rise and there was an increase in real-estate spending as well as a rise in exports. All these factors helped in boosting the Q2 numbers even though the lower Fed spending proved to be a ball and chain.
The main reason for the upward-revision was the improvement in trade balance is what economists are saying. The country imported less and exported more than what had initially been projected by the commerce department. There has also been a decrease in the number of Americans who are filing new unemployment claims.
In Thursday’s trading session Barrick Gold Corporation (NYSE:ABX) rose by 1.86%. The opening price of the shares was $19.21 which touched an intraday high of $19.89 and closed at $19.69. More than 0.420 million shares were traded on Thursday while the average volume of shares that were traded over 30 days was 17.86 million. The company has a market cap of 19.71 billion.
ABX is a gold mining company that is involved in producing and selling gold. It also engages in numerous other related-activities like mine development and exploration. Apart from gold, the company produces copper as well. This is produced largely from its Lumwana and the Zaldivar mines that are situated in Africa. The company also has a nickel development-project in Africa