Dallas, Texas 06/26/2015 (Financialstrend) – Yamana Gold Inc. (USA) (NYSE:AUY) in the past few days has been trending downwards, given the fall in global gold prices. The yellow metal prices continue to be influenced by the oil price fluctuation. Even fall in oil prices due to uncertainty associated with Greek debt has taken its toll on commodities.
Canada-based Yamana Gold Inc operates as gold and copper exploration company with over seven mines in various stages of development of projects in Argentina, Chile, as well as Brazil.
In the past week, the stock had gained from the rebound in gold prices, with rally on June 18, leading to 0.91% gains for the stock. The gold prices had risen due to the fall in dollar prices and the positive statement by the Federal Bank, that interest rates would be raised.
Despite the recent gains, most analyst firms have a ‘sell’ on Yamana Gold Inc. (USA) (NYSE:AUY) stock. The gold mining company has in recent quarter, posted decline in its EPS, besides being an underperformer in the S&P 500 and Metals & Mining Industry averages. Additionally, it continues to be troubled by decreasing net operating cash flow. The decline is nearly 92.04% over last year same quarter, indicating Yamana Gold Inc, needs to reassess its strategies. Meanwhile, newer gold consumption markets are emerging, auguring well for gold stocks.
Gold consumption on the rise in the US
While China and India are traditional gold consumers, recent market patterns indicate that gold jewelry consumption in US is also on the rise. The consumption was noted for the third consecutive year. The shift is now to 14 carat jewelry over the traditional 10 carat jewelry. It is hoped that the trend will continue as investors prefer the yellow metal. Yamana Gold Inc. (USA) (NYSE:AUY) has been falling since last year October’14 and things don’t look good for the stock. The stock has an YTD of 23.09% in the current year.