Gold Remains Undervalued: CIBC Targeting $30 for Barrick, Market Soars, Critical Minerals Breakthrough

Featured Article:

• CIBC Capital Markets upgraded Barrick Gold (NYSE: B, TSX: ABX) to “outperform” and raised its price target from US$28 to US$30 following strong Q2 results, renewed operational stability, and improved performance at key assets like Nevada Gold Mines and Pueblo Viejo.

• Gold prices are up over 40% in the past year and CIBC forecasts an average of US$3,600/oz into 2026, with geopolitical tensions, central bank buying, and economic uncertainty creating a favorable backdrop for gold miners.

• Barrick has been lagging peers since 2024, but recent operational improvements and delivery on production guidance have boosted investor confidence, positioning the stock to potentially outperform if execution remains strong and gold prices hold or rise.

Markets Pricing in Rate Cuts for September:

• High odds of a September rate cut – Traders see an 86–88% chance the Fed will cut rates at its Sept. 16–17 meeting, after weak July jobs data and downward revisions signaled a slowing labor market.

• More cuts likely by year-end – Banks like J.P. Morgan expect multiple cuts after September, possibly up to three, as unemployment rises and job growth remains soft.

• Markets reacting now – Stocks are up and the U.S. dollar is down on rate cut bets, while grain prices stay weak due to good weather and big harvest expectations.

• A likely Fed rate cut in September could lift stocks and make borrowing cheaper, encouraging more deals and investment in riskier assets. But lower bond yields and cash returns push investors toward riskier bets, raising volatility and the chance to take on more risk.

Market Snapshot This Week:

• Meta Platforms (META +3.30%)
  The stock surged strongly—over 11% in after-hours trading and around 3–3.5% during the trading day—driven by a blockbuster Q2 2025 earnings report. Meta posted year-over-year revenue growth of 22% to $47.5B and net income up 36%, thanks largely to AI-enhanced advertising efficiency and recovery in ad pricing and user engagement CEO Mark Zuckerberg’s ambitious AI push—centered around "superintelligence," massive capital expenditures, recruiting elite AI talent, and inventive infrastructure funding—fueled further investor enthusiasm.

• Nvidia (NVDA +0.22%)
  Though experiencing a modest +0.22% gain here, Nvidia has been a high-flyer lately—its market cap recently eclipsed $4 trillion, a historic milestone, buoyed by robust demand for AI chips and institutional buying.
  Recent news indicates it secured a U.S. government-linked deal to sell AI chips (H20) to China, bolstering growth prospects and boosting institutional confidence.

• Broad Market Themes
  The broader financial map reflects sector-wide optimism in technology and AI-driven growth, especially in software infrastructure, consumer electronics, and semiconductors. Headlines point to tech strength amid uncertainty around tariffs and inflation, with the Nasdaq reaching new highs despite cautious investor sentiment.

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