17th Aug 2020 12:34
(Alliance News) - Shares in FTSE 100-listed gold miners were higher on Monday following a substantial investment by Warren Buffet into one of the world's largest gold miners.
The Oracle of Omaha's Berkshire Hathaway Inc acquired 21 million shares in Canada's Barrick Gold Corp, in a deal worth USD563 million, according to a quarterly US Security & Exchange Commission filing released on Friday. The purchase represents 1.2% of Barrick's shares outstanding.
The move caught the eye of investors as Buffet has been a longstanding sceptic of investing in the precious metal.
Barrick shares were up 8.7% in pre-market trade in New York.
Gold was quoted at USD1,952.21 an ounce at midday in London, up from USD1,945.10 an ounce Friday evening. Bullion is up 29% so far in 2020 amid dollar weakness and safe-haven allure during the coronavirus crisis.
"Gold remains bubbly on the 'Buffet Bandwagon bounce' after running into sticky bids in Asia; investors continue to look at gold as key a diversifier against future dollar weakness even more so with positions much cleaner," AxiCorp's Stephen Innes said.
Shares in London-listed Fresnillo PLC and Polymetal International PLC were up 1.8% and 1.9% respectively on Monday.
By Arvind Bhunjun; [email protected]
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