Will Goldcorp (GG) Stock Be Hurt by Lower Gold Prices?

Goldcorp (GG) stock is increasing on Friday afternoon despite gold prices trading down amid profit-taking and higher risk appetite.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Goldcorp (GG) are advancing 0.88% to $18.30 on Friday afternoon even though gold prices are retreating.

For August delivery, gold is down 0.59% to $1,323.20 per ounce on the COMEX this afternoon.

The price of the metal is falling today amid profit-taking and higher appetite for risk in stock markets, the Wall Street Journal reports.

Gold is traditionally seen as a safe-haven asset.

This week, gold prices dropped to a three-week low as investors' concerns over the global economy have subsided.

Additionally, traders are looking to the Federal Reserve's policy statement next week after its July meeting, the Journal noted. Expectations for a rate hike in September have increased since the release of strong U.S. home building data this week.

Gold is non-interest paying and struggles to compete with assets that bear a yield when interest rates are raised.

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

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