Harmony Gold (HMY) Stock Slumps on Lower Gold Prices

NEW YORK (TheStreet) -- Shares of Harmony Gold (HMY) were sliding in mid-afternoon trade on Wednesday as gold prices fell to their lowest level in two months on upbeat economic data.

Automatic Data Processing (ADP) reported earlier today that private-sector employers added 177,000 jobs in August.

Analysts estimated a gain of 175,000 jobs, MarketWatch reports.

The data followed comments from the Federal Reserve Vice Chairman Stanley Fischer yesterday indicating that the central bank would determine the pace and size of upcoming interest rate hikes on the strength of the economy.

Strong growth in private-sector jobs for the month could compel the Fed to increase rates sooner, according to MarketWatch.

The Labor Department will release an additional August jobs report on Friday, which could also point to the size and timing of future hikes.

Gold fares poorly when interest rates are increased as investors seek assets that provide higher yields.

For December delivery, gold was down 0.42% to $1,311 per ounce on the COMEX this afternoon.

Harmony Gold is a South African gold mining and exploration company.

Separately, 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.

TheStreet Ratings rated this stock as a "hold" with a ratings score of C-.

The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins.

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


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