Is Yamana Gold Inc (NYSE:AUY) Stock a Buy For July?

There are many investors who are interested in gold stocks and one of the stocks from the sector that managed to deliver some gains this past Friday was that of Yamana Gold Inc (NYSE:AUY).

There was no news about the company on Friday but the stock managed to clock gains of 3%. However, it is necessary to note that back on June 25, Yamana Gold got a major boost after its Issuer Default Rating and senior unsecured ratings were judged as BBB or stable by the rating agency Fitch Ratings. The ratings agency also explained the reason why Yamana Gold got the rating that it got.

Fitch Ratings pointed out that the ratings are a reflection of the portfolio of five low country risk mines that the company is currently operating. In addition to that, it was pointed out that Yamana Gold also boasts of strong liquidity and has been using moderate levels of leverage in order to conduct its business.

Those were the other factors behind the ratings. It is a significant boost for the company and something that could prove to be a positive for many investors. It remains to be seen if the Yamana Gold stock can maintain its momentum this week.

Market Reaction:

On Friday, AUY stock was up 3.10% at $4.32 with more than 11.26 million shares, compared to its average volume of 10.33 million shares. The stock had moved within a range of $4.2100 – 4.3300 after opening the trade at $4.26. Over the past 52-week, the stock has been trading within a range of $3.9900 – 7.0200.