Yamana Gold (AUY) Stock Climbs as Gold Prices Rally
iStock
NEW YORK (TheStreet) -- Shares of Yamana Gold (AUY) - Get Report are increasing 4.04% to $5.41 on Friday morning as gold prices head for their fifth straight week of gains.
For August delivery, gold is jumping 1.55% to $1,341 per ounce on the COMEX this morning.
The price of the precious metal is getting a lift from a weaker dollar and the potential for more monetary policy easing after Britain's vote to leave the European Union, Reuters reports.
Gold is more expensive to foreign investors when the greenback is strong.
"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.
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