Yamana Gold (AUY) Stock Falls on Lower Gold Prices

NEW YORK (TheStreet) -- Shares of Yamana Gold (AUY) were falling 5% to $3.25 Thursday as gold prices were falling after three straight days of gains.

U.S. gold futures for August delivery fell 0.6% to $1,179.10 an ounce on the Comex Thursday morning.

Gold prices were rising Thursday as the U.S. dollar gained strength after a U.S. Commerce Department retail sales report, according to Market Watch. In the report the Commerce Department said that retail sales grew a seasonally adjusted 1.2% in May with sales excluding autos and gasoline growing 0.7% in the month.

The positive report led some investors to believe the Federal Reserve will raise interest rates soon, according to Market Watch. Higher interest rates help lower gold prices, which performs better in low interest rate environments.

Yamana Gold is a Canadian-based gold producer with positions in Brazil, Chile, Mexico, and Colombia.

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 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 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."

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