Miners React to the Changes in Precious Metals
Mining stocks’ performance
In order to analyze the precious metal market’s performance, it’s crucial to look at the core miners and their technical details.
Let’s look at key mining stocks’ technical details like moving averages and YTD (year-to-date) three-month returns. We’ll compare the performances of Goldcorp (GG), Randgold Resources (GOLD), AngloGold Ashanti (AU), and IamGold (IAG).
Goldcorp and AngloGold Ashanti have seen YTD losses of 3.7% and 12.1%, respectively. Randgold Resources and IamGold have YTD gains of 19.5% and 45.7%, respectively. The SPDR Gold Shares (GLD) tracks the movement in gold. It has seen a YTD gain of 10%.
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Currently, all four of the miners are trading below their 20-day and 100-day moving averages. All of the miners, except AngloGold Ashanti, rose on November 3.
A significant discount to the 20-day and 100-day moving averages suggests a possible revival in the price, while a premium suggests a potential decline.
Notably, the four miners’ target prices are above their current trading prices, which points at a potential increase in the price.
Goldcorp, Randgold Resources, AngloGold Ashanti, and IamGold have RSI (relative strength index) levels of 51.2, 29.6, 41.6, and 34.2, respectively. An RSI level lower than 30 indicates that we might see upward movement in the price, while an RSI higher than 70 indicates a possible downturn in the price.
Recently, GLD’s RSI was 32.9. So, there’s a chance that GLD could rise.