SPDR Gold Trust (ETF) (GLD), Barrick Gold Corporation (USA) (ABX): Swirling Influences Drive Gold Higher

The SPDR Gold Trust (ETF) (NYSEARCA:GLD) is always a great way for individual investors to gain exposure to gold given its liquidity and the reduced complexity it represents relative to futures. Any positive performance in gold is most likely to be seen first in the commodity, which lacks the operating and mine-specific risk typical of mining companies. If you have a bit more appetite for risk, however, Goldcorp Inc. (USA) (NYSE:GG) and Barrick Gold Corporation (USA) (NYSE:ABX) look interesting for different reasons.

Goldcorp received positive comments earlier this week from JPMorgan Chase & Co. (NYSE:JPM)‘s  John Bridges: “Goldcorp is also one of the stronger companies with one of the stronger balance sheets.” While that comment alone is not enough to be a catalyst for the stock, Bridges is well respected and his research note should call attention to the company’s strength. Goldcorp Inc. (USA) (NYSE:GG), and others, have faced challenges from weak gold prices, so stability should be seen as bullish.

GG data by YCharts

Barrick Gold Corporation (USA) (NYSE:ABX) is a recovery play. Shares have gotten hammered this year, largely on delays at the company’s Pascua-Lama mine. One of these was driven by weak prices changing the economics of the mine, but rising prices may allow the company to reevaluate its position on Pascua-Lama. The stock has fallen so far that a recovery for Barrick Gold Corporation (USA) (NYSE:ABX) has the potential to result in outsized gains. This is, of course, dependent on stability in the price of gold, so remaining focused here is critical.

The article Swirling Influences Drive Gold Higher originally appeared on Fool.com and is written by Doug Ehrman.

Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool owns shares of JPMorgan Chase & Co. (NYSE:JPM).

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