Gold Fields (GFI) Stock Rises as Gold Prices Gain

NEW YORK (TheStreet) -- Shares of Gold Fields  (GFI) were advancing in late-afternoon trading on Thursday as higher gold prices benefit the South African gold miner. 

Gold for December delivery was up 0.68% to $1,358 per ounce on the COMEX earlier today. 

The precious metal is benefiting as the dollar has weakened after minutes from the Federal Reserve's July meeting revealed that several members are cautious about hiking interest rates soon. 

A weaker greenback makes dollar-denominated commodities such as gold more affordable for foreign buyers, therefore bolstering demand.

Additionally, non-interest bearing metals such as gold perform better when interest rates are low.

"Most market participants are now expecting a December rate hike at the earliest. That means that people are on the side of buying gold," Yuichi Ikemizu, head of commodity trading at Standard Bank in Tokyo, told Reuters. 

Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D+.

Gold Fields's weaknesses include its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and feeble growth in its earnings per share.

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

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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