NEW YORK (TheStreet) -- Shares of Goldcorp (GG) are down by 2.39% to $17.18 in late morning trading on Friday, as some mining and related stocks tumble as a result of the decline in the price of gold.
The price of the yellow metal is falling due to a better than expected rise in nonfarm payrolls for May.
Gold for August delivery is slipping by 0.53% to $1,169 per ounce on the COMEX this morning.
Gold extended its loss into a third day after the Commerce Department said 280,000 new jobs were added in May, the largest spike since the end of 2014 and higher than the consensus estimate of 225,000, The Wall Street Journal reports.
The unemployment rate in May ticked upward slightly to 5.5% from 5.4%.
Improvement in the labor market can clear the way for the Fed to hike up interest rates, which is expected in the second half of the year, The Journal added. The publication noted that a rate hike can be bad news for gold as it is a non interest earning asset. The precious metal can struggle to entice investors away from interest bearing assets when rates rise.
Separately, TheStreet Ratings team rates GOLDCORP INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate GOLDCORP INC (GG) 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, weak operating cash flow and generally disappointing historical performance in the stock itself."