Barrick Gold falls 2.9%

BARRICK Gold Corp, the world’s largest gold producer, dropped 2.9% in the Canadian stock exchange after US manufacturing and construction reports boosted confidence in the economy, The National reports.

Barrick Gold, which owns 95% of the Porgera gold mine in Papua New Guinea, lost 2.9% to C$51.59.

The S&P/TSX surged 14% last year as gold jumped 30% on concern central-bank stimulus programmes may spur future inflation.

Eight of the world’s 20 largest gold producers, including Barrick Gold, are Canadian.

Teck Resources Ltd., Canada’s biggest base-metals and coal producer, advanced 1.7% after the institute for supply management’s gauge of US manufacturing climbed to a seven-month high.

The Standard & Poor’s/TSX composite index slipped 40.91 points, or 0.3%, to 13,402.31 at 4 p.m. in Toronto.

Canadian markets were closed on Tuesday when the US commerce department said construction spending rose 0.4% last November, twice the median forecast of economists in a Bloomberg survey.

“Gold is a bit of a safe haven for people,” Doug Davis, vice chairman of Toronto money manager Davis-Rea Ltd., which manages C$400 million.

“If they think it’s time to get a little less safe, they may move some money out of gold.” – Bloomberg