Barrick Gold (GOLD) stock has been trading in a narrow range for the last several weeks. Meanwhile, gold and silver’s performance has been lackluster after optimistic economic data releases. As Barrick Gold stock and gold prices are moderately correlated, gold could continue to drive Barrick Gold stock.
A weaker outlook for gold?
Barrick Gold stock has had a strong year and is up almost 30% so far. Peer Newmont Goldcorp (NEM) stock has soared approximately 23%. Investors generally turn to gold as a safe haven when there are uncertainties in the broader market. Gold rallied in this year’s second quarter, boosting mining stocks.
Recession fears increased a few months back when the yield curve inverted and US-China trade tensions escalated. However, the US economy’s improvement could dull gold again. The US GDP grew 2.1% in this year’s third quarter. Additionally, there seems to be some progress in the US and China reaching a trade deal, with phase one set to be signed next month. Market sentiment could continue to improve, drawing investors away from safe havens.
Barrick Gold stock’s technical indicators
GOLD stock is currently trading at $17.45, 3% and 10% above its 50- and 200-day moving averages, respectively. The fair premium to both support levels indicates strength in the stock. The stock crossed above its 50-day average early this month. Its 50-day average close to $17 might support the stock in the short term.
Barrick Gold stock’s 200-day average around $15.80 could also act as support in the short to medium term. On December 20, the stock’s RSI (relative strength index) score was 53, indicating the stock was neither overbought nor oversold.
Barrick Gold stock has had a decent run this year. How is it valued for next year compared with peers? Does it have any steam left after its rally? To learn more, read How Do Barrick Gold and Newmont Goldcorp Stack Up?
Analysts’ target prices
Analysts’ mean target price for Barrick Gold stock is $20.50, which implies a 17% upside over the next year from its current price of $17.50. Of the 21 analysts covering GOLD, nine suggest “buy,” four rate it as a “strong buy,” and eight suggest “hold.” BMO cut its target price from $22.50 to $22 last week.
Analysts’ mean target price of $47 for Newmont Goldcorp stock implies a 15% upside from its current price of $40.90. Of the 18 analysts tracking Newmont, nine suggest “buy,” four rate it as a “strong buy,” and five suggest “hold.”