Goldcorp (GG) Stock Slumps as Gold Prices Decline
NEW YORK (TheStreet) -- Shares of Goldcorp (GG) are sinking 2.46% to $17.86 late Monday afternoon as gold prices trade in the red.
For December delivery, gold is decreasing 0.5% to $1,324.90 per ounce on the COMEX this afternoon.
Gold prices are lower today ahead of the Federal Reserve's meeting on Wednesday, the Wall Street Journal reports.
The precious metal is non-interest paying and has difficulty competing with assets that bear a yield when interest rates are raised.
Recent better-than-expected U.S. economic data and abating concerns about the impact of the U.K.'s exit from the European Union have prompted some investors to believe the Fed has more room to tighten monetary policy this year, the Journal noted.
"The Fed is definitely in the back of people's minds," Peter Hug, global trading director at Kitco Metals, told the Journal, "Any scare that the Fed is considering moving in September could cause a selloff."
Vancouver-based Goldcorp is a gold producer engaged in the operation, exploration, development and acquisition of precious metal properties in Canada, the U.S., Mexico and Central and South America.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C- on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and largely solid financial position with reasonable debt levels by most measures.
But the team also finds that the company's return on equity has been disappointing.
Recently, 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 articles's author.
You can view the full analysis from the report here: GG