Eldorado Gold (EGO) Stock Jumps as Gold Prices Rise

NEW YORK (TheStreet) -- Eldorado Gold (EGO) stock is gaining 5.22% to $4.74 in afternoon trading on Friday as shares of the Canadian gold mining company benefit from rising gold prices.

Gold for August delivery is increasing 1.64% to $1,342.30 per ounce on the COMEX this afternoon.

Gold was supported by a weaker dollar that makes the commodity cheaper for foreign investors as well as expectations for monetary policy easing, Reuters reports.

Prices for the precious metal are set to gain for the fifth consecutive week as investors sought a safe haven after the U.K.'s decision to leave the European Union, which caused uncertainty in the markets.

"For gold, the initial reaction was safe-haven demand due to the uncertain political situation in Europe, but then the latest move might be more of a reaction to comments from central banks that they are moving to an easing bias," Danske Bank senior analyst Jens Pedersen told Reuters.

Separately, Eldorado Gold has a "sell" rating and a letter grade of D+ at TheStreet Ratings because of the company's disappointing return on equity and weak operating cash flow.

You can view the full analysis from the report here: EGO

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.

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