Yamana Gold (AUY) Stock Plunges After Gold Prices Hit Two-Month Low

Yamana Gold (AUY) stock is retreating today as previously rising gold prices take a 'breather' today.
By Natalie Walters ,

NEW YORK (TheStreet) -- Shares of Yamana Gold (AUY) - Get Report are down 6.34% to $5.47 in late-afternoon trading on Wednesday, reflecting gold prices that hit a two-month low today on a stronger dollar. 

"Because gold prices have risen so quickly between February and June, I suppose it is taking a breather at the moment," Vyanne Lai, an economist at National Australia Bank, told Reuters.

Lai said the bank expects improvement for gold prices in the near future: "Generally, we do see global environment being relatively supportive of gold at the current level in the next three months at least."

Gold for August delivery is down 1.10% to $1,317.70 per ounce on the COMEX this afternoon.

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 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 articles's author. TheStreet Ratings has this to say about the recommendation:

We rate YAMANA GOLD INC as a Sell with a ratings score of D+. This is driven by a number of negative factors, which we believe 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 we cover. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity.

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

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