There’s a lot of fear brewing in the macroeconomic framework and this has been a cynical boon for gold stocks, particularly the alpha players like Barrick Gold (GOLD). On a year-to-date basis, Barrick saw its equity value skyrocket nearly 33%. If the past five sessions are anything to go by given the 20.41% return, GOLD stock may have plenty left in the tank.
Sure, it’s always possible to have too much of a good thing. At the same time, the dramatic rise in the yellow metal appears to be fueled by true fundamentals; namely, the fear of inflation ripping away at the real value of the dollar. As Barchart’s Andrew Hecht pointed out early this month, gold should exceed its inflation-adjusted 1980 high of over $3,300 per ounce.
