Yamana Gold (AUY) Stock Up on Higher Gold Prices

Yamana Gold (AUY) stock is climbing Wednesday morning as gold prices recover from their lowest in nearly two weeks.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Yamana Gold (AUY) - Get Report are advancing 2.35% to $5.88 late Wednesday morning as gold prices trade in the green.

For August delivery, gold is up 0.33% to $1,339.70 per ounce on the COMEX this morning.

Gold prices are recovering from their lowest in almost two weeks, as prospects for more economic stimulus helped boost investor appetite for the metal, Reuters reports.

Accommodative monetary policies favor gold and equities as low interest rates encourage investors to seek out assets that don't depend on interest yields.

"Gold prices can continue to benefit from an uncertain economic picture for the UK and Europe after the Brexit vote and also from any quantitative easing, which also means low interest rates," Natixis analyst Bernard Dahdah told Reuters.

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

Loading ...