Shares of gold-mining companies rise on expectations of higher demand, tighter supply
Shares of gold-mining companies gained Tuesday after an analyst said the precious metal appeared set for benefit from tight supply and growing demand.
Goldman Sachs analyst Oscar Cabrera said in a client note that “policy-driven investment constraints and geopolitical concerns impeding the free flow of capital across the commodity complex together with strong demand from (Brazil, Russia, India and China), despite a Western World economic slowdown, will support higher commodity prices.”
His favorite commodities for investment purposes are copper, iron and gold.
“Barrick (Gold Corp.) offers the best risk/reward in our gold coverage with the strongest project pipeline in that space,” he wrote in his Monday note.
Shares of Barrick rose $1.44, or 3.5 percent, to $42.36 in afternoon trading.
Other gold miners also gained, with Agnico-Eagle Mines Ltd. up $2.66, or 3.7 percent, to $71.87; Yamana Gold Inc. up 44 cents, or 2.9 percent, to $15.66; Goldcorp Inc. up $1.42, or 3.4 percent, to $42.70; and Kinross Gold Corp. up 53 cents, or 2.7 percent, to $21.31.
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