Friday evening traders piled into shares of Barrick Gold Inc. (GOLD) when they got news that the Oracle of Omaha, a.k.a. Warren Buffett, had purchased a significant stake in the gold mining company in the second quarter. Buffett has long held the precious metal in disdain but he has also taken detours into silver in the late 1990s.
Let's check out the charts and indicators of GOLD.
In the daily bar chart of GOLD, below, we can see that the second quarter was very strong for the shares. GOLD rallied with the broader market from the middle of March into late May. The On-Balance-Volume (OBV) line rose telling us that buyers of GOLD were more aggressive.
Prices dipped into June but the rally quickly resumed. GOLD is above the rising 50-day moving average line and above the rising 200-day moving average line. The OBV line has continued to rise into August with only a recent dip.
The Moving Average Convergence Divergence (MACD) oscillator is pointed down to the zero line but renewed price strength is likely to turn this indicator bullish again.