Yamana Gold (AUY) Stock Pops on Higher Gold Prices

Yamana Gold (AUY) stock is advancing on Thursday morning alongside gold prices after the ECB signaled it could increase stimulus in coming months.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Yamana Gold (AUY) - Get Report are rising 5.43% to $5.63 late Thursday morning as gold prices trade in the green.

For August delivery, gold is up 0.46% to $1,325.30 per ounce on the COMEX this morning.

Gold prices are increasing today after the European Central Bank indicated it could boost stimulus in the coming months, the Wall Street Journal reports.

Monetary easing usually raises demand for gold by prompting investors to purchase the precious metal as a hedge against weakening paper currencies, the Journal noted.

ECB President Mario Draghi suggested that the central bank could provide more stimulus when it meets in September. By then it will have had more time to assess Brexit's effect on growth prospects.

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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