Gold Fields (GFI) Stock Climbs With Gold After Fed Statement - TheStreet
Gold Fields (GFI) stock is soaring on Wednesday afternoon alongside gold prices after the Fed left interest rates unchanged.
NEW YORK (TheStreet) - Shares of Gold Fields (GFI) are jumping 6.97% to $6.22 late Wednesday afternoon as gold prices advance after the Federal Reserve left interest rates unchanged.
The metal is non-interest paying and struggles to compete with assets that offer a yield when interest rates are hiked.
But the central bank hinted at the possibility of an interest rate raise in the coming months.
Traders still view a rate hike in September or December as unlikely, Bob Haberkorn, senior market strategist at RJO Futures, told the Wall Street Journal.
"Right now, gold's [trading] like that's probably not in the cards," he said, "The market...isn't believing that the Fed will be doing anything this year."
For December delivery, gold is gaining 1.3% to $1,345.60 per ounce on the COMEX this afternoon.
Gold Fields is a Johannesburg, South Africa-based gold mining company.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D+ on the stock.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and feeble growth in its earnings per share.
Recently, 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.
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