Skip to main content

NEW YORK (TheStreet) -- Shares of Yamana Gold (AUY) - Get Yamana Gold Inc. (Canada) Report are advancing by 1.47% to $3.11 late Thursday morning, as gold prices near their largest quarterly gain in almost 30 years.

For June delivery, gold is higher by 0.61% to $1,236 per ounce on the COMEX this morning.

Gold prices are increasing today as a decline in equities bolstered the metal's appeal as an alternative asset, Reuters reports.

Additionally, expectations for a U.S. interest rate raise faded.

Non-interest paying gold struggles to compete with assets that offer a yield when interest rates are hiked.

"A combination of safe-haven demand on the back of worries about China in particular, a scaling back of expectations of further rate hikes from the Fed, and rising inflation expectations...have been behind the rally in the gold price," Capital Economics analyst Simona Gambarini told Reuters.

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.

Scroll to Continue

TheStreet Recommends

(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 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.

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 and generally disappointing historical performance in the stock itself.

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: AUY

Image placeholder title