Will Goldcorp (GG) Stock Be Affected by Lower Gold Prices?

NEW YORK (TheStreet) -- Shares of Goldcorp (GG) are up 0.33% to $18.30 on Tuesday afternoon even though gold prices are trading in the red.

For June delivery, gold is declining 0.37% to $1,261.90 per ounce on the COMEX this afternoon.

The price of the precious metal dropped to an almost two-week low today after its sharpest loss since March yesterday, as a firmer dollar and higher stocks weakened demand for gold, Reuters reports.

The metal is more expensive to foreign currency holders when the greenback is strong.

"The drivers that have lifted gold prices still remain largely intact, including the continuous wavering of the Fed in terms of the rate increases and the softening of the dollar, which introduced a layer of uncertainty in investors' mindsets that tends to support the precious metal," Nitesh Shah, ETF Securities director of commodity research, told Reuters.

Goldcorp is a Vancouver-based gold producer engaged in the operation, exploration, development and acquisition of precious metal properties in Canada, the U.S., Mexico and Central and South America.

Separately, TheStreet Ratings Team has a "Sell" rating with a score of D+ on the stock.

This is driven by multiple weaknesses, which 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 covered by the team.

Among the areas the team feels are negative, one of the most important has been an overall disappointing return on equity.

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.

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