NEW YORK (TheStreet) -- Shares of Gold Fields (GFI) were rising in late-afternoon trading on Wednesday as gold prices increased on a weaker dollar and diminished expectations for a September interest rate hike.
Gold for December delivery was recently up 0.20% to $1,326.30 per ounce on the COMEX, snapping five straight days of losses.
A weaker greenback makes dollar-denominated commodities such as gold more affordable to foreign buyers, while lower interest rates makes holding non-yield bearing assets like gold more attractive.
The Federal Reserve will meet later this month to decide whether to increase interest rates, and investors believe the gold market will be calm until then, the Wall Street Journal reports.
"We have some peace and quiet until the 21st. We're no longer pricing in the rate hike in September," George Gero, managing director at RBC Wealth Management, told the Journal. "But because the specter of higher rates has not gone away, the rally is muted."
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.