Barrick Gold Stock Gains Momentum from Record Precious Metals Rally

Shares of Barrick Gold are finding support from a powerful surge in gold prices, driven by investors seeking safety amid escalating global trade tensions. While the stock's recent movement has been modest, the underlying market dynamics are significant. The company is simultaneously advancing a major copper expansion project and maintains a robust financial position, creating a compelling profile in the current economic climate.

Barrick's investment case extends beyond its core gold operations. The company holds substantial copper capacity, a metal crucial for electrification and infrastructure. Copper prices remain near their highs, though they exhibit greater volatility due to economic uncertainty in China and shifting global trade policies. This dual exposure positions Barrick to benefit from strength in both precious and industrial metals.

Central to this strategy is the large-scale expansion of the Lumwana copper mine in Zambia. The project employs modern flotation technology to optimize processing and improve recovery rates, particularly for fine particles. The goal is to boost annual production to approximately 240,000 tonnes, a significant increase that could become a major earnings driver given sustained copper prices.

Trade Fears Fuel Record Gold Breakout

The immediate catalyst for the sector's strength is a sharp escalation in trade tensions, notably new tariff threats from the U.S. government on select European goods. Fears of a broadening conflict have dampened market sentiment, channeling capital into traditional safe-haven assets.

This flight to safety propelled gold prices approximately 1.27% higher in a single session, reaching a new record near $4,730 per ounce and decisively breaking through the $4,700 barrier. Silver also posted one of its strongest daily gains in decades. For producers like Barrick, such a pronounced price increase directly enhances projected revenues and margins, a relationship currently reflected in the broad re-rating of gold and silver mining equities.

Should investors sell immediately? Or is it worth buying Barrick?

Financial Strength Provides Operational Flexibility

Barrick enters this favorable pricing environment from a position of considerable financial power. In Q3 2025, the company generated a record operating cash flow of $2.4 billion. Free cash flow stood at $1.5 billion, underscoring its high degree of internal financial strength.

This substantial liquidity affords the company flexibility in two key areas: it can fund major projects like the Lumwana expansion internally, and it retains capacity to return capital to shareholders through dividends or other distributions. This strong cash generation forms a solid foundation alongside record gold prices and a growing copper segment.

Market Performance and Technical Context

Within the context of a broader sector rally, Barrick shares have moved higher, ranking among the beneficiaries of the market's renewed focus on precious metals. The stock's current price of €42.50 sits just below its recent 52-week high but remains well above all key moving averages. Over a twelve-month horizon, the share value has nearly tripled.

Following the strong gains of recent months, the Relative Strength Index (RSI) reading of 28.4 indicates a short-term oversold condition—a notable technical setup. The core investment thesis remains intact: rising underlying commodity prices improve the earnings potential of miners, especially when their cost base remains relatively stable.

Looking ahead, Barrick's trajectory will likely hinge on whether trade conflicts intensify further and if both gold and copper can maintain their elevated price levels in the coming quarters.