UBS analyst Matt Murphy reiterates his Neutral rating for Barrick Gold Corporation (USA) (NYSE:ABX) as gold stocks continue to march forward in the wake of the Brexit.

The analyst notes that the key drivers that influence the price of gold and gold affiliated stocks are:

  1. Low to negative real rates
  2. The dollar peaking against developed market currencies
  3.  General macro risks

The analyst believes that the United Kingdom’s decision to ditch the EU reinforces these themes that have initiated UBS to upgrade their forecast price of gold from $1,250-1,300 per ounce to $1,280- 1,450 per ounce in 2016-18E.

The analyst believes that Barrick’s gold price of $1,400 per ounce limits upside for investors in the current macro-risk landscape. The analyst also explains that government initiatives put in place to stabilize macro risk add to his Neutral rating.

According to TipRanks, Matt Murphy is a 4.5 star analyst, with a success rate of 67% and an average return of 21.8%