
Will Yamana Gold (AUY) Stock Be Pressured by Lower Gold Prices?
NEW YORK (TheStreet) -- Shares of Yamana Gold (AUY) - Get Report are higher by 1.19% to $5.96 on Tuesday morning even though gold prices are trading in the red.
For August delivery, gold is down 0.9% to $1,344.40 per ounce on the COMEX this morning.
Gold prices are dropping for a second consecutive day as global stocks rally due to abating political uncertainty in Britain and optimism of economic stimulus, Reuters reports.
That can hinder demand for safe-haven assets such as precious metals.
"Tensions in Britain are easing for now, as the country will soon have a new prime minister," Carlo Alberto de Casa, ActivTrades chief analyst, told Reuters.
"With the British pound gaining some ground, demand for gold and other safe havens is decreasing," he noted, adding that the next support level for gold would be around $1,340.
Gold has advanced about $100 per ounce since the U.K. decided to leave the European Union last month, which prompted concerned investors to seek out safe-haven assets.
Toronto-based Yamana is a gold and copper exploration company that operates seven mines and oversees several ongoing development projects in Brazil, Argentina and Chile.
(Yamana is held in David Peltier's Stocks Under $10 portfolio. See all of his holdings with a free trial.)
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D+ on the stock.
This is driven by a number of negative factors, 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.
Among the areas the team believes 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 article's author.
You can view the full analysis from the report here: AUY










