Yamana Gold (AUY) Stock Rises With Gold Prices
NEW YORK (TheStreet) -- Yamana Gold (AUY) - Get Report stock is up 0.85% to $4.77 in afternoon trading on Friday after gold prices recovered from earlier losses.
Gold for June delivery is rising 0.21% to $1,273.90 per ounce on the COMEX this afternoon.
Gold prices dropped this morning after the dollar strengthened following strong U.S. economic data that fueled hopes for a rate hike in the coming months, Reuters reports.
A stronger dollar makes dollar-denominated commodities like gold more expensive for foreign buyers.
"The move (in the gold price) this year has really been down to the shift in the U.S. policy expectations," Deutsche Bank analyst Michael Hsueh told Reuters. "It's more about ... when we start to see a consistent improvement in U.S. data that could push the pendulum the other way and push the dollar higher."
Toronto-based Yamana Gold is a gold mining company with assets in Argentina, Mexico, Chile and other countries.
(Yamana Gold is held in David Peltier's Stocks Under $10 portfolio. See all of his holdings with a free trial.)
Separately, Yamana Gold has a "sell" rating and a letter grade of D at TheStreet Ratings because of the company's feeble earnings per share growth, deteriorating net income and disappointing return on equity.
You can view the full analysis from the report here: AUY
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.
