Barrick Gold rises up

The big gold producers like Newmont Goldcorp or Barrick Gold had an impressive run in the current year. Especially in the past weeks, the number 1 and number 2 stocks in the industry have increased significantly. But now Matthew Murphy, an analyst at Barclays, is putting the brakes on euphoria and downgrading the two stocks to “hold”. He advises taking profits.

Gold is already at a record high in many currencies. And even if you put gold in relation to oil or other raw materials, there is a new record. Barclays therefore suggests withdrawing from gold. The analyst believes that despite the economic damage from the Covid 19 pandemic, things should slowly return to normal.

 

Gold looks perfect

“The fact that gold looks so good right now suggests that it probably can’t get much better. We see headwind for the gold price over the course of 2020, ”wrote Murphy. “The prospects for industrial goods are rather poor given the necessary cutbacks in supply. However, history can get better here. ”That is why investors should focus on this area. The economy will recover and that is bad for the gold price. In contrast, industrial metals have potential.