Barrick Gold gave strong outlook on Monday after stomping past second-quarter earnings estimates. Barrick Gold stock jumped. Major gold ETFs recovered buy points as stocks wobbled and gold prices firmed up ahead of key inflation data.
Barrick Gold Earnings, Barrick Gold Stock
Early Monday, Barrick Gold, one of the world's largest gold and copper miners, crushed Q2 views.
On a per-share basis, Barrick Gold earnings rebounded 68% to 32 cents, accelerating from a 36% gain in Q1. Revenue grew nearly 12%, year over year, also quickening from Q1's 4% gain, according to FactSet. Free cash flow rose "materially," quarter over quarter, the company said, while debt decreased.
On Monday, Barrick Gold said it is on track for a strong second half of 2024. The company said it expects projects in Pueblo Viejo (Dominican Republic), Porgera (Papua New Guinea) and Lumwana (Zambia) to deliver "materially higher volumes."
Barrick, the world's No. 2 gold producer after Newmont , said on Monday that it is looking for investment opportunities in Canada.
Further, Barrick announced it would continue share repurchases to capture "embedded value in the business and growth pipeline." In Q2, Barrick Gold repurchased 2.95 million shares under the $1 billion stock buyback program that it announced in February.
Shares surged 9.4% to 19.04 in above-average volume on the stock market today. Barrick Gold stock failed a July breakout from a double-bottom base with an 18.10 buy point, falling as much as 11% from the entry. But shares have now rebounded past 18.10.
Newmont stock popped 2.3% to 48.79 on Monday. It is now extended from a July breakout past 44.59, meaning shares are not in buy range.
Gold ETFs Rebound; Gold Prices At 10-Day High
Among gold-related exchange traded funds, SPDR Gold Shares, Van Eck Merk Gold Trust and SDPR Gold Mini Shares rebounded on Monday past buy points.
Gold prices hit a 10-day high on Monday. In 2024, gold prices have soared to record highs amid optimism about U.S. interest-rate cuts. Geopolitical tensions have fueled safe-haven demand. Spot gold reached $2,462.81 per ounce on Monday, down from mid-July's 2024 highs but the highest since Aug. 2.
Hopes of cooling inflation have driven up hopes for rate cuts. Investors this week will get a better understanding of the state of the world's largest economy. The July producer price index report is due on Tuesday. The consumer price index follows on Wednesday, and July retail sales on Thursday.
Lower interest rates decrease the opportunity cost of investing in bullion, which bears no yield.
Gold stocks in general rallied against Monday's mixed market. Agnico Eagle Mines, Alamos Gold and Eldorado Gold all scored strong gains.
In July, copper and gold stocks sparkled on rate-cut hopes and other factors. Agnico cleared a 71.50 buy point last month. After choppy progress, the gold explorer and producer rose out of range on Monday.
This year's gold price surge has been driven by robust investment demand, according to VanEck. The firm noted "substantial purchases by central banks in emerging markets such as China, India, and Turkey."
