For February delivery, gold is down by 0.74% to $1,060.10 per ounce on the COMEX this afternoon.
The price of the yellow metal is being pushed into the red today by a firm dollar and sinking oil prices, the Wall Street Journal reports.
"Oil will likely resume its downward trajectory in the new year and the odds are for continued strength in the dollar. Until those forces stabilize, the metals have not posted their lows," Peter Hug of Kitco Metals, said in a note to clients cited by the Journal.
Gold is down nearly 11% for the year so far.
Gold Resource is a Colorado Springs-based mining company engaged in the exploration, production and evaluation of precious and base metal properties, including gold, silver, copper, lead and zinc.
Separately, 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 articles's author. TheStreet Ratings has this to say about the recommendation:
We rate GOLD RESOURCE CORP as a Hold with a ratings score of C-. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including poor profit margins, a generally disappointing performance in the stock itself and disappointing return on equity.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 67.8% when compared to the same quarter one year prior, rising from -$1.46 million to -$0.47 million.
- GORO's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.14, which illustrates the ability to avoid short-term cash problems.
- Despite the weak revenue results, GORO has significantly outperformed against the industry average of 45.7%. Since the same quarter one year prior, revenues slightly dropped by 7.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, GOLD RESOURCE CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- The gross profit margin for GOLD RESOURCE CORP is currently lower than what is desirable, coming in at 31.00%. It has decreased from the same quarter the previous year.
- You can view the full analysis from the report here: GORO