Gold Fields (GFI) Stock Climbs on Higher Gold Prices
NEW YORK (TheStreet) -- Gold Fields (GFI) - Get Report stock is rising 7.04% to $5.24 in late-afternoon trading on Friday as higher gold prices benefit shares of the South African gold mining company.
Gold for August delivery is surging 1.66% to $1,342.50 per ounce on the COMEX this afternoon.
Prices are climbing today as weak economic data from China and continued uncertainty regarding Britain's vote to exit to the European Union bolster safe-haven demand for the precious metal.
Global economic concerns have made an interest rate hike by the Federal Reserve less likely, which is furthering bolstering gold prices. Gold doesn't bear interest and has more difficulty competing with yield-bearing assets when rates are higher.
"For gold, the initial reaction was safe-haven demand due to the uncertain political situation in Europe, but then the latest move might be more of a reaction to comments from central banks that they are moving to an easing bias," Danske Bank senior analyst Jens Pedersen told Reuters.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
Gold Fields's weaknesses include its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and feeble growth in its earnings per share.
You can view the full analysis from the report here: GFI
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.