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NEW YORK (TheStreet) -- Shares of Yamana Gold (AUY) - Get Yamana Gold Inc. (Canada) Report were gaining 6.4% to $2.65 on Wednesday as gold prices ticked higher ahead of a statement today from the Federal Reserve about interest rates.

Gold futures for December delivery were up 1.26% to $1,180.50 an ounce on the Comex Wednesday morning.

The Fed is expected to release a statement about U.S. interest rates at 2 p.m. EDT after the conclusion of its Federal Open Market Committee meeting. Some investors believe the U.S. central bank will keep interest rates near zero due to recent weak economic reports, according to the Wall Street Journal.

Fed policy makers recently commented that the decision to raise rates will be based on economic data showing the U.S. economy is strong enough to handle higher borrowing costs, according to the Journal.

"The market has accepted the idea that the Fed is ready to move if the data warrants it, but the data has not warranted it," said Dave Meger, director of metals trading with High Ridge Futures, told the Journal. "At the end of the day the market doesn't believe that the criteria [for a rate increase] is going to be met."

Gold performs better in low interest rate environments as the yellow metal does not offer a yield.

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Insight from TheStreet's Research Team:

Yamana Gold is a core holding of David Peltier's Stocks Under $10 Portfolio. During the most recent weekly roundup, this is what Dave had to say about the stock:

Yamana Gold ( (AUY) - Get Yamana Gold Inc. (Canada) Report ; 2.97%): This gold and copper exploration company operates seven mines and several ongoing development projects in Brazil, Argentina and Chile. The shares gained more than 3% this week, ahead of the coming quarterly report on Oct. 29. We believe that management will continue to maximize margins in the coming quarters. AUY is an Inflection Point stock and has a price target of $12.50.

- David Peltier, 'Stocks Under $10 Weekly Roundup' originally published 10/23/2015 on Stocks Under $10

Want more information like this from David Peltier BEFORE your stock moves? Learn more about Stocks Under $10 now.

AUY data by YCharts

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