Yamana Gold (AUY) Stock Drops on Lower Gold Prices
NEW YORK (TheStreet) -- Shares of Yamana Gold (AUY) - Get Report are falling 3.31% to $5.25 late Monday morning as gold prices decline.
For December delivery, gold is down 0.75% to $1,321.50 per ounce on the COMEX this morning.
Gold prices are sliding today amid a recovery in risk appetite, which supported world stock markets near nine-months highs ahead of a U.S. central bank meeting this week, Reuters reports.
The precious metal is traditionally seen as a safe-haven asset.
Gold is also non-interest paying and struggles to compete with assets that offer a yield when the Federal Reserve raises interest rates.
Recent better-than-anticipated economic data from the U.S. has strengthened the case for a rate hike, the Wall Street Journal noted.
The metal's slump today is due to "generally improving risk sentiment in financial markets," Carsten Menke, a commodities research analyst at Julius Baer, told the Journal.
"Equities are up again this morning, rates are somewhat higher, so from that perspective the demand for gold as a safe haven might ease somewhat," he 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.
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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