Skip to main content

NEW YORK (TheStreet) -- Primero Mining Corp.  (PPP) stock is down by 1.66% to $1.78 in early afternoon trading on Tuesday, as gold prices decline.

Gold prices are slipping ahead of the Federal Reserve's meeting this week, which could provide insight into the timing of the next interest rate hike, the Wall Street Journal reports. Gold struggles to compete with interest-bearing assets when rates are raised. 

The odds of a rate hike before June have increased to 48%, according to the Journal.  

"The downside of gold and silver will be very contingent on the Fed's tone tomorrow," Bob Haberkorn, a broker at JO Futures, told the Journal

Gold for April delivery is falling by 1.20% to $1,230.20 per ounce on the COMEX this afternoon. 

TheStreet Recommends

Based in Toronto, Primero is a gold mining company with operating mines in Canada and Mexico. 

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 rates this stock as a "sell" with a ratings score of D. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

You can view the full analysis from the report here: PPP

Image placeholder title