New Gold (NGD) Stock Spikes on Higher Gold Prices

NEW YORK (TheStreet) -- Shares of New Gold (NGD) are soaring 7.26% to $5.17 late Friday morning as gold prices advance.

For December delivery, gold is gaining 0.83% to $1,352.30 per ounce on the COMEX this morning.

Gold prices are rising today after a report on U.S. economic growth came in below expectations, which pushed the dollar down and supported precious metals, MarketWatch reports.

The yellow metal is more expensive to foreign currency holders when the dollar is strong.

Gross domestic product rose at a seasonally adjusted annual rate of 1.2%, while economists had projected an increase of 2.6%.

Weak GDP data is likely to cause the Federal Reserve to be more cautious about raising interest rates, MarketWatch noted.

Gold is non-interest paying and struggles to compete with assets that bear a yield when interest rates are hiked.

New Gold is a Vancouver-based gold mining company.

Separately, TheStreet Ratings Team has a Sell rating with a score of D+ on the stock.

This is driven by some concerns, 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.

Among the areas the team feels are negative, one of the most important has been unimpressive growth in net income over time.

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: NGD

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