Gold price holds jobs-shock gain, Barrick craters
Barrick sank as much as 9.7% after analysts judged its $1.95 billion Fourmile deal too cheap, while hedge funds turned their most bullish on gold in six months.
Gold and silver prices surged on Monday amid traders betting that Friday's surprise contraction in US employment would prevent a September interest rate hike. Gold reached its best level since mid-June, trading near $4,421.50 an ounce, while silver hit a seven-week high at $65.075. Barrick Mining's stock plummeted, setting its worst daily decline since March, after the company agreed to sell its prized Fourmile gold discovery to rival Newmont for $1.95 billion.
Analysts questioned the deal's value, estimating it at $325 an ounce. Meanwhile, US economic data showed a sharp drop in employment, with 23,000 jobs lost in July, easing concerns about a rate hike. However, rising energy costs and inflation concerns weighed on the dollar, which rose against commodities.
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