AUY - Why This Promising Gold Stock Slumped 18.4% in January
Shares of Yamana Gold (NYSE: AUY) slumped 18.4% in the month of January, according to data provided by S&P Global Market Intelligence . That's a pretty rough start to the year for the gold stock after its sparkling 44.6% gains in 2020.
Yamana Gold shares started to drop alongside the price of gold after Jan. 6 when Congress finalized then President-elect Joe Biden's victory. The development fueled hopes of a big fiscal stimulus to ride out the economic crisis triggered by the COVID-19 pandemic, which sent the stock markets higher while prices of precious metals fell. Precious metals like gold are typically considered safe-haven assets during uncertain times, which is why the gold price -- and most gold stocks -- surged double-digits in 2020 when global economies were roiled by the pandemic.
With gold under pressure, it was hard for Yamana Gold shares to hold up through the month. A higher gold-price environment is imperative for Yamana to earn higher revenue and profits.
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Why This Promising Gold Stock Slumped 18.4% in January