Yamana Gold (AUY) Stock Up with Gold Ahead of Fed Meeting

Yamana Gold (AUY) stock is gaining on Tuesday morning as gold edges higher ahead of the Federal Reserve’s two-day policy meeting.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Yamana Gold (AUY) - Get Report are rising 1.53% to $5.31 late Tuesday morning as gold prices trade in the green.

Gold prices are advancing today as the dollar is declining, Reuters reports. The metal is more expensive to foreign currency holders when the greenback is strong.

The Federal Reserve's two-day policy meeting this week will be closely monitored for clues into the future pace of U.S. interest rate hikes.

Gold is non-interest paying and struggles to compete with assets that offer a yield when interest rates are raised.

While the central bank is widely expected to leave policy unchanged at its meeting, which begins today, investors are looking to signs that the Fed could move back tightening later this year, Reuters noted.

For December delivery, gold is increasing 0.06% to $1,328 per ounce on the COMEX this morning.

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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