Finally, Friday (April 11) has arrived. After a week of intense buying and selling tug-of-war, investors appear exhausted. Despite the latest economic data showing China’s retaliatory tariff hike on U.S. imports to 125% in response to U.S. tariff increases, the market reaction was muted, with major indices closing slightly higher.
Today, gold stocks were the highlight: Barrick Gold (GOLD) rose 5.6% in early trading, Newmont Mining (NEM) gained 6.6%, and Coeur Mining (CDE) led with a 7.6% surge.
UBS provided a boost to the gold sector today by raising price targets for Barrick and Newmont. Barrick’s target was increased to $25 while maintaining a “Buy” rating, and Newmont’s target was raised by 20% to $60, also with a “Buy” rating. UBS noted that the current trajectory of gold stocks resembles patterns seen during the 2008 financial crisis and the 2020 pandemic—initially sold off due to margin calls but now resuming their upward trend. The bank predicts that gold, as a safe-haven asset, could rise to $3,500 per ounce by 2026 (currently at $3,230).
In the short term, Newmont (reporting April 23) and Barrick (April 29) will release earnings, while Coeur Mining has delayed its report to May 7. The market is more optimistic about the first two.
Considering all factors, Barrick may be the safer choice. The company has the healthiest balance sheet, with net debt of just $1.2 billion and annual free cash flow of $1.3 billion. Additionally, its 2.3% dividend yield offers extra income. Barrick’s current valuation already reflects reasonable fundamentals, making it a more stable bet for investors bullish on gold in the long run.
