Yamana Gold (AUY) Stock Down as Gold Prices Fall

Yamana Gold (AUY) stock is dropping on Thursday afternoon as gold prices retreat from a two-year high.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Yamana Gold (AUY) - Get Report are slumping 3.33% to $5.66 late Thursday afternoon as gold prices decline from a two-year high.

For August delivery, gold is lower by 0.4% to $1,361.60 per ounce on the COMEX this afternoon.

Gold prices are under pressure today as investors book profits ahead of a widely anticipated U.S. jobs report tomorrow, the Wall Street Journal reports.

The June non-farm payrolls are due out Friday and may give further indications into the strength of the U.S. economy. This could impact whether the Federal Reserve will hike interest rates this year.

Gold is non-interest paying and can struggle to compete with assets that bear a yield when interest rates are increased.

Recently, investors have been fleeing to gold and other safe-haven assets in the wake of the U.K.'s decision to exit the European Union, the Journal noted.

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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