NEW YORK (TheStreet) -- Shares of Yamana Gold (AUY) - Get Report are lower by 0.81% to $2.45 in mid-morning trading on Thursday, as some mining and metals stocks take a hit due to the decline in gold prices.
Gold is tumbling today as the Federal Reserve could hike interest rates at its December meeting. Higher interest rates can weigh on gold as the asset pays no interest to those that hold it.
And, the precious metal can struggle to compete against interest-yielding assets.
Gold for December delivery is falling by 2.09% to $1,151.50 per ounce on the COMEX this morning.
Yamana Gold is a Toronto-based gold producer engaged in gold mining and related activities, including exploration, extraction, processing and reclamation. The company has mines in Brazil, Chile, Canada, Mexico, Argentina and other locations.
"The Fed hint that it may hike in December has been to the detriment of all commodity prices, as the dollar index surged ahead in the wake of the statement. For now, the market seems fairly confident that December is literally D-Day; but then the market was pretty confident back in September too," head analyst at London Capital Group Brenda Kelly told MarketWatch.
Insight from TheStreet Research Team:
Yamana Gold is a core holding of David Peltier's Stocks Under $10 portfolio. Here is what Peltier had to say about the stock in his most recent weekly roundup:
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.
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Separately, TheStreet Ratings team rates YAMANA GOLD INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
We rate YAMANA GOLD INC (AUY) a SELL. This is driven by a number of negative factors, which we believe 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 we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: AUY