NEW YORK (TheStreet) -- NovaGold Resources (NG) - Get Report stock is up by 9.05% to $4.34 in mid-afternoon trading on Friday as gold prices surge. 

Gold prices are increasing due to the decline in the greenback, Reuters reports. The precious metal can become more expensive to foreign investors when the dollar is stronger.

Still, the price of gold is near multi-year lows after the Fed raised interest rates by 25 basis points on Wednesday, Reuters notes. The precious metal struggles to compete with interest-bearing assets when rates are raised.

"Next year the macro picture is looking a little less negative for gold and precious," Mitsubishi analyst Jonathan Butler told Reuters. "It's hard to see, without a significant underperformance in the yen and the euro, how the dollar is going to rally very strongly next year."

Gold for February delivery is up by 1.38% to $1,064.10 per ounce on the COMEX this afternoon.

Based in Vancouver, NovaGold is focused on the exploration for and development of gold and copper mineral properties.

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