Key Highlights

● CIBC cut Barrick to Neutral from Outperform with a $49 price target.

● December gold futures settled at $4,181.10 an ounce, up $11.00.

● Money rotated into materials and other sectors as investors grew wary of AI-related stocks.

● Newmont reports Oct 22 and the Fed decides Oct 28.

CIBC steps back

Barrick Mining (NYSE:B) was in focus on Friday after CIBC downgraded the stock to Neutral from Outperform with a $49 price target, according to a roundup of the day's analyst calls. A move to Neutral indicates the broker no longer expects the stock to beat its peers.

CIBC's reasoning was not detailed, and no reliable figure for Barrick's move on Friday was available. Price data for gold miners such as Barrick and Newmont (NYSE:NEM) could not be verified for the session, so the reaction to the downgrade is unclear.

Barrick is one of the world's largest gold producers, with mines across North America, South America, Africa and other regions. It also produces copper. The company changed its name from Barrick Gold to Barrick Mining, reflecting a broader focus that includes copper alongside gold.

Gold edges higher

The downgrade came on a day when gold prices rose modestly. December gold futures settled at $4,181.10 an ounce, up $11.00, according to market data. Another report quoted a slightly higher figure of $4,188.80, up $18.70. Either way, the metal edged higher on the day.

Several forces support gold. Geopolitical tensions escalated as Iran stepped up attacks on tankers in the Strait of Hormuz, market reports showed. The dollar index slipped during the session, trading between 101.69 and 101.75, per market data. A weaker dollar tends to make gold cheaper for holders of other currencies.

Bullion's strength has made gold miners a closely watched group, since a producer's costs are largely fixed in the short run and higher metal prices can flow quickly into margins. Other metals were active. Steel prices surged, lifting Nucor (NYSE:NUE), according to a published report. Alcoa (NYSE:AA) jumped after beating third-quarter profit estimates, though its revenue fell short, market reports indicated.

Rotation into materials

Materials were among the sectors that benefited from a rotation away from technology on Friday. Money flowed into energy, utilities, consumer staples, health care, financials and materials as investors grew wary of AI-related stocks, according to market commentary.

The NYSE Composite, where Barrick's shares are listed, has no reported closing level for Friday. The S&P 500 fell 84.62 points to 7,659.44, and the Nasdaq Composite dropped 572.99 points to 26,140.03 in its worst week since June. The Dow Jones Industrial Average slipped 175.28 points to 52,002.41 but rose for the week.

Rates also matter for gold, which pays no interest. The 10-year Treasury yield eased to roughly 5.1, according to market data, after reaching its highest level since 2002 earlier in October. The Federal Reserve raised rates by a quarter point in September, and markets still price a hike by December.

Barrick Awaits Newmont's Oct 22 Report

For Barrick, investors will watch whether other brokers follow CIBC's lead, and the direction of gold prices. Barrick's next quarterly report will show how much of the rally in bullion is reaching its bottom line.

The Federal Reserve's decision on Oct 28 is another key event. Fed Chair Kevin Warsh declined to tip his hand in Bangkok, saying: "I don't prejudge meetings." A shift in rate expectations could move both gold and the miners. Rival Newmont reports after the close on Oct 22, which will offer a read on costs and output across the industry.