Barrick Gold (ABX +0.8%) is higher despite UBS' move to lower its target price for the shares to $18.50 from $21.75, citing a lack of fresh demand for gold coupled with the improving U.S economy that will result in gold remaining in a range-bound state.
UBS thinks the recent gold price push has arisen mostly from short-covering rather than the emergence of new buyers, and believes the Fed "will not alter their tilt toward tapering nor interrupt their debate about when to tighten and how quickly" given the emergence of encouraging U.S. economic data points.
The firms forecasts gold prices declining from $1,300/oz. to $1,200/oz. in 2015.