BARRICK, N.Y. — Barrick has a new $1 billion deal with gold giant Barrack Gold to buy gold in the U.S., according to people familiar with the transaction.
The transaction is expected to close by the end of the month.
The people spoke on condition of anonymity because the agreement hasn’t been officially announced.
Barrack is buying gold from U.K.-based gold-miner gold company, Goldfields, which is also buying gold and silver from the same company.
The deal includes about 1,000 ounces of gold and a deal valued at about $1,350 per ounce.
The company is valued at $10 billion and is one of the biggest players in the gold market.
The price of gold is expected hit $1 per ounce on Monday.
The Goldfields deal comes as Barrack has a growing investment in gold and the U,S.
Last year, Barrack was the second-largest gold buyer in the world behind China, buying more than $2 billion worth of gold.
Gold’s recent rally has prompted the company to seek a buyer to bolster its position as it tries to compete with China.
The new gold purchase is expected reduce Barrack’s current gold holdings by about 50% from the amount it held in 2011.
Gold prices have rebounded to the $1-per-ounce level, a level analysts have said is unsustainable given the recent price surge.
The investment will be a boon for Barrack, which has already announced plans to cut its gold holdings to below $100 million.
It is also a way to expand its mining operations, and it could help the company meet growing demand for its precious metal products, including gold bullion.
Gold has enjoyed a resurgence in the past few months as investors see the gold price spike as the global economy begins to improve and companies like Barrack that make precious metals products, such as gold bullions, start to see stronger sales.
Gold rose $1 on Monday to a record $1:1,769.53 an ounce.