AUY - Why This Gold Stock Fell 15.2% in February but Is Luring Investors in March
Extending their southward-bound journey from January, shares of Yamana Gold (NYSE: AUY) fell 13.9% last month, according to data from S&P Global Market Intelligence . The gold stock has, however, kicked off March on a relatively encouraging note, gaining nearly 7.2% so far, of the time of this writing.
After hitting a high of around $1,950 per ounce in early January, gold prices started to fall steadily and lost nearly 11% by the end of February. Gold is considered a safe-haven asset, which is why its price rose in 2020 when the COVID-19 pandemic shook the world. The pessimism abated as 2021 kicked off, starting with Joe Biden's win in the presidential election that spurred hopes of a fiscal stimulus. Gold prices declined further in February as COVID-19 vaccinations rolled out and bond rates inched higher and hurt the yellow metal's appeal against bonds as a store of value.
None of that was good news for Yamana Gold, which makes more money when gold price rises. Investors, in fact, dumped gold stocks last month and flocked to other hot sectors that were primed to benefit from an economic recovery.
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Why This Gold Stock Fell 15.2% in February but Is Luring Investors in March