Will Yamana Gold (AUY) Stock Gain on Higher Gold Prices?

Yamana Gold (AUY) stock is down on Tuesday morning even though gold prices are increasing amid lower appetite for risk.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Yamana Gold (AUY) - Get Report are declining 0.59% to $5.89 on Tuesday morning even though gold prices are trading in the green.

For August delivery, gold is up 0.28% to $1,333 per ounce on the COMEX this morning.

Gold prices are higher today on lower investor appetite for risk, Reuters reports. The precious metal is traditionally seen as a safe-haven asset. 

Additionally, gold prices are being supported as European shares hit a one-week low after data showed Britain's decision to leave the European Union hurt German business confidence.

The Mannheim-based ZEW institute said its economic sentiment index fell to -6.8 points in July from 19.2 in June, Reuters noted.

Investors are now looking to results of the European Central Bank meeting on Thursday for further cues.

"There is talk of some further accommodation being doled out, in which case we could see gold moving a little higher from here," INTL FCStone said in a note cited by Reuters.

"If the ECB holds back, the selling could resume, with a test of key support at $1,308 possibly being in the cards and needing to hold," the firm added.

Toronto-based Yamana is a gold and copper exploration company that operates seven mines and oversees several ongoing development projects in Brazil, Argentina and Chile.

(Yamana is held in David Peltier's Stocks Under $10 portfolio. See all of his holdings with a free trial.)

Separately, TheStreet Ratings Team has a "Sell" rating with a score of D+ on the stock.

This is driven by a number of negative factors, which should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks covered.

Among the areas the team believes are negative, one of the most important has been an overall disappointing return on equity.

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 article's author.

You can view the full analysis from the report here: AUY

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