Yamana Gold (AUY) Stock Falls Along With Gold Prices

Yamana Gold (AUY) shares are lower as gold prices fall following a strong U.S. jobs report.
By Lindsay Ingram ,

NEW YORK (TheStreet) -- Shares of Yamana Gold (AUY) - Get Report were falling 7.2% to $1.81 on Friday as gold prices drop following a strong U.S. jobs report.

Gold futures for December delivery were down 1.55% to $1,087.10 an ounce on the Comex Friday morning.

Prices of the yellow gold were falling after the Labor Department's report that said the U.S. economy added 271,000 new jobs in October, above economists' estimates of 183,000 new jobs in the month. The unemployment rate fell to 5% from 5.1% in September.

The positive jobs report led many investors to believe the Federal Reserve could raise interest rates soon, according to the Wall Street Journal.

"This looks bearish for gold between now and the next Fed meeting...a quarter-point rate increase looks in the cards for their December meeting," RJO Futures senior commodities broker Bob Haberkorn told the Journal.

Insight from TheStreet's Research Team:

Yamana Gold is a core holding of David Peltier's Stocks Under $10 Portfolio. During the most recent weekly roundup, this is what Dave had to say about the stock: 

Yamana Gold ( (AUY) - Get Report ; 2.64%): This gold and copper exploration company operates seven mines and several ongoing development projects in Brazil, Argentina and Chile. The stock dropped 13% this week, as management posted mixed quarterly results on Thursday. Traders also started to price in a higher likelihood of a Fed interest rate hike in December. That said, we believe Yamana can continue to grow production in the coming quarters, while keeping a tight lid on costs. We'd consider adding back to our position under $2. AUY is an Inflection Point stock and has a price target of $12.50.

-David Peltier, "Stocks Under $10 Weekly Roundup," originally published 10/30/15 on Stocks Under $10

AUY data by YCharts

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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