The price of the precious metal is lower by 2.25% to $1,258.50 per ounce on the COMEX this morning.
Gold prices fell after the Fed signaled that it was still on its way to raising U.S. interest rates this year, Reuters reports.
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In a policy statement issued on Wednesday the Fed said the U.S. economy was growing "at a solid pace," but maintained its position that it would be patient in determining when it will increase benchmark borrowing costs.
The possibility of an increase in U.S. interest rates could result in investors moving away from the yellow metal, as it is a non-interest-bearing asset, Reuters noted.
"The U.S. is still the driver of global growth, the Fed is the only bank considering any sort tightening, and that is going to weight on gold," a Mitsubishi Corp. strategist told Reuters.
Separately, TheStreet Ratings team rates GOLDCORP INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate GOLDCORP INC (GG) a SELL. This is driven by a number of negative factors, which we believe 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 we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 980.0% when compared to the same quarter one year ago, falling from $5.00 million to -$44.00 million.
- Net operating cash flow has decreased to $192.00 million or 29.92% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, GOLDCORP INC has marginally lower results.
- GOLDCORP INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, GOLDCORP INC swung to a loss, reporting -$3.30 versus $1.78 in the prior year. This year, the market expects an improvement in earnings ($0.71 versus -$3.30).
- This stock has managed to decline in share value by 4.62% over the past twelve months. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
- 36.09% is the gross profit margin for GOLDCORP INC which we consider to be strong. Regardless of GG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GG's net profit margin of -5.12% significantly underperformed when compared to the industry average.
- You can view the full analysis from the report here: GG Ratings Report