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Just How Crucial Is the Gold-Silver Ratio?

PART:
1 2 3 4
Part 2
Just How Crucial Is the Gold-Silver Ratio? PART 2 OF 4

Mining Stocks: Analyzing the Latest Performance

Miners recovered

Most mining companies saw an up-day on Thursday, July 20, as precious metals fell lower. In this part of our series, we’ll discuss the technicals of silver mining stocks such as Alamos Gol (AGI), First Majestic Silver (AG), B2Gold (BTG), and Royal Gold (RGLD).

Overall, the variations in gold are a crucial determiner of mining stock prices.

Mining Stocks: Analyzing the Latest Performance

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AGI, AG, BTG, and RGLD recorded a year-to-date rise of 2.6%, 4.8%, 14.3%, and 32.5%, respectively. The VanEck Vectors Gold Miners (GDX) has a year-to-date gain of 7.1%. Many miners are now showing year-to-date gains. The past week brought a significant price recovery.

Technicals of miners

These four miners are trading above their short-term 20-day moving averages—except B2Gold, which is considerably closer to its 20-day moving average. Alamos and First Majestic are trading below their 100-day moving averages while Royal Gold is above its 100-day moving average. A reasonably good premium over a stock’s price indicates a potential downside correction in its price, and a considerable discount to a stock’s price suggests a rise in its price. 

The target prices of these miners, however, remain much higher than their current trading prices, indicating a positive outlook for the associated precious metals.

RSI levels for most mining stocks have risen significantly over the past week. However, July 20 saw their prices rebound, and their RSI levels followed suit. The RSI level for GDX was 55.3 on July 20, 2017.

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