Yamana Gold (AUY) Stock Falling as Gold Prices Hit 11-Week Low
by Jill WhiteJune 5, 20150 comments
According To TheStreet, Shares of Yamana Gold (AUY) were falling, down 2.41% to $3.43 in afternoon trading Friday, as gold prices slip to an 11-week low level following the release of jobs data earlier today, according to Reuters.
U.S. employment data for May, released at 8:30 a.m. ET, came in better-than-forecast.
Non-farm payrolls rose by 280,000 last month, compared to the increase of 225,000 economists polled by Thomson Reuters had forecast.
The jobless rate came in slightly higher at 5.5%, versus the 5.4% economists were expecting.
The dollar rallied, up 1.1% versus a basket of currencies following the positive jobs data, Reuters reports.
A stronger dollar makes gold more expensive for holders of other currencies, Reuters added.
Spot gold reached its lowest level since March 19 at $1,162.35 an ounce earlier today before recovering to trade at $1,171.06 an ounce as of 3:09 p.m. ET today.
Gold for August Delivery was trading lower by 0.42% to $1,170.30 an ounce as of 3:05 p.m. ET today.
The precious metal is heading for a third consecutive weekly decline, Reuters noted.
Canada-based Yamana is a gold producer, engaged in gold production, gold development stage properties, exploration properties and land positions in Brazil, Chile, Argentina, Mexico and Colombia.
Insight from TheStreets Research Team:
Yamana Gold is a core holding of David Peltiers Stocks Under $10 Portfolio. During the most recent weekly roundup, this is what Dave had to say about the stock:
Yamana Gold (AUY; $3.59; 1,350 shares; 2.67%; Inflection Point; $12.50 price target): This gold-and- copper exploration company operates seven mines and several ongoing development projects in Brazil, Argentina and Chile. The shares fell 5% this week, along with the broader market. Wed consider adding to our position below $3.50, as management is cutting costs and boosting core production growth.