With gold prices regaining their shine, keep an eye on Barrick Gold (GOLD).
For one, as investors wait for it to recover, they can collect a yield of 2.38%. Two, the stock is wildly oversold at current prices. The last time this stock became this technically oversold, it ran from a low of about $15.50 to just over $20.50.
Three, even global central banks are racing to buy gold. in the first quarter, they bought 228t of gold – 34% higher than the previous record set in 2013, according to the World Gold Council. That also follows annual demand of 1,078t in 2022. Also, analysts at UBS believe gold prices could hit $2,100 by year-end; $2,200 by March 2024.
Four, gold prices are starting to recover. In fact, the metal last traded at $1,977.27 – up about $10.75 on the day. From here, we’d like to see gold back above $2,000 near-term.
Barrick Gold last traded at $17.46 – up about 57 cents on the day.
From that price, we’d like to see it closer to $21.