NEW YORK (TheStreet) -- Shares of Gold Fields Ltd. (GFI) are gaining by 4.92% to $3.84 in mid-morning trading on Wednesday, as some mining and related stocks are driven higher due to the rally in the price of gold.
The precious metal is advancing today due to a decline in the dollar. The price of commodities dominated by the greenback tend to increase when the currency goes soft.
Gold for June delivery is up by 1.95% to $1,215.70 per ounce on the COMEX this morning. The dollar is down by 0.92%, according to the Wall Street Journal dollar index.
"The question facing gold is will bullion derive more upwards thrust from a weak dollar or will rising yields sap and possibly reverse the rally," HSBC analyst James Steel told Reuters, adding that "It appears that the currency markets are more influential in aiding bullion, at least near term, although gold is running into resistance at the $1,200 an ounce psychological level."
Additionally, analysts at UBS upgraded Gold Fields to "neutral" from "sell" today.
Separately, TheStreet Ratings team rates GOLD FIELDS LTD as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate GOLD FIELDS LTD (GFI) a SELL. This is driven by multiple weaknesses, 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 unimpressive growth in net income, poor profit margins and weak operating cash flow."