NEW YORK (TheStreet) -- Shares of Eldorado Gold (EGO) - Get Report are lower by 2.73% to $4.28 in early afternoon trading on Friday, as some metal and mining stocks retreat today due to the dip in the price of gold.
Gold for August delivery is sliding by 0.55% to $1,216 per ounce on the COMEX this afternoon.
The price of the precious metal is trading in the red today as more evidence of improving economic growth in the U.S. strengthens the case for another interest rate hike, the Wall Street Journal reports.
As rates rise gold tends to struggle as the asset pays no yield to those that hold it.
Gold is viewed as a safe haven asset in times of economic uncertainty, the metal rallied earlier this year on concerns about growth. However, those early economic weakness is 2016 was only temporary as recent data suggests the U.S. economic recovery is continuing apace, the Journal noted.
Eldorado Gold is a Vancouver-based owner and operator of mines across the globe. The company's mines consist primarily of gold mines but Eldorado also operates a silver-lead-zinc mine.
Separately, TheStreet Ratings has set a "sell" rating and a score of D on Eldorado Gold stock. This is driven by a number of negative factors, which TheStreet Ratings believes 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 it covers.
The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
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.
You can view the full analysis from the report here: EGO