NEW YORK (TheStreet) -- Gold Fields (GFI) - Get Report stock is retreating 3.83% to $3.56 on heavy trading volume on Wednesday afternoon as weak gold prices persist in anticipation of a U.S. interest rate hike.
Higher interest rates would boost the dollar, making gold and other dollar-denominated commodities more expensive to hold abroad.
Gold for August delivery is down 0.47% to $1,226.40 per ounce on the COMEX this afternoon.
Strong domestic home sales data on Tuesday added to expectations for higher interest rates next month, Reuters reports.
Last week, Fed meeting minutes showed officials are leaning towards increasing interest rates. Gold prices have dropped more than 4% since those minutes were released.
"The economic data is firming up in the U.S. and this is making the dollar stronger," Think Forex chief market analyst Naeem Aslam told Retuers. "Traders are of the mind-set that the Fed will increase the interest rate in June."
Gold Fields is a with operations in Ghana, Australia and Peru.
So far today, 8.54 million shares of Gold Fields, a South Africa-based gold mining company, have exchanged hands, compared with its average daily volume of 6.71 million shares.
Separately, Gold Fields has a "sell" rating and a letter grade of D at TheStreet Ratings because of the company's deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and feeble earnings per share growth.
You can view the full analysis from the report here: GFI
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.