Yamana Gold (AUY) Stock Up as Gold Prices Turn Positive
NEW YORK (TheStreet) -- Shares of Yamana Gold (AUY) - Get Report are advancing 0.85% to $5.95 late Monday morning as gold prices trade in the green.
For August delivery, gold is increasing 0.18% to $1,360.90 per ounce on the COMEX this morning.
Earlier in the trading session, gold declined after Friday's strong U.S. jobs data reduced concerns about the state of the country's economy, the Wall Street Journal reports.
The data showed that 287,000 jobs were added in the U.S. in June.
The report was met with relief after a disappointing May jobs report, which showed the lowest monthly gain in five years, the Journal noted. Investors also had expected that the Federal Reserve would delay raising interest rates in the coming months.
Gold is non-interest paying and struggles to compete with assets that bear a yield when interest rates are increased.
"The data from Friday was surprisingly good," Bernard Dahdah, a precious metals analyst at Natixis, told the Journal, "If it weren't for the situation we now have in Europe, gold prices could have possibly dropped below $1,250."
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