Barrick Gold (GOLD US) is more than twice the size of Newcrest Mining (NCM) with operating mines & projects in more than 18 countries producing Gold & Copper. Gold has been a frustrating trade since peaking above $US2000/oz in March, and while Spot Gold is down around ~18%, Gold equities have fared significantly worse, in the case of Barrick the price is down nearer 40%. The rising $US has been a major headwind for precious metals, however, it seems highly likely to MM that the US Fed is poised to take it’s foot off the pedal meaning interest rate differentials with the rest of the world should start to fade, bringing in the strong prospect that the $US has put in a top. If that is the case, then gold equities have seen their low and should rally strongly from here.
- MM owns GOLD US with a 7% weighting, if we had a smaller position, we would be buying.
MM is bullish Gold & Gold equities
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