Commodities Are Mixed in the Early Hours on October 17
On October 17, crude oil opened on a stronger note and traded with strength above the opening prices in the early hours.
Precious metal mining companies gave a mixed reaction on Thursday, October 12.
Among these four miners, AngloGold has the lowest correlation with gold so far this year, while Coeur Mining has the highest correlation YTD.
Most precious metals had a down day on Tuesday, October 10, despite the recent overall upward movement in precious metals.
On October 11, 2017, Randgold Resources, Pan American Silver, Barrick Gold, and Kinross Gold had implied volatility readings of 25.0%, 34.0%, 29.1%, and 41.6%, respectively.
Among the miners that we’re looking at in this part of the series, Sibanye Gold has the lowest correlation to gold on a YTD basis, while Gold Fields has the highest correlation to gold.
Mining shares had a mixed pattern in their price reactions on Wednesday, October 11, 2017.
The inverse relationship between precious metals and the dollar is evident since these metals are dollar-based assets.
Most precious metals saw a down day on Tuesday, October 10, despite the upward movement in precious metals.
Mining funds that have a strong relationship to precious metals are the Global X Silver Miners (SIL) and the VanEck Vectors Gold Miners (GDX).
Precious metal mining companies saw a mixed day on Tuesday, October 10, 2017, as precious metals climbed.
When considering mining stocks, investors should consider crucial indicators like RSI (relative strength index) levels and call implied volatility.
CDE, ABX, and HL have a YTD gain of 4.8%, 4.5%, and 2.3%, respectively. However, EGO has a YTD loss of 27%.
On a YTD basis, First Majestic has the lowest correlation to gold, while Primero Mining has the highest correlation to gold.
AngloGold Ashanti (AU) saw its last recommendation change in May 2017, when CIBC downgraded the stock to a “sector perform” rating.
After a stupendous 2016, the South African gold miners (GDX) have had a disappointing run so far in 2017. As a group, they’ve lost 10.8% YTD.
After the Guatemalan government’s decision to suspend Tahoe Resources’ (TAHO) license, the company saw several downgrades.
The performances of precious metal miners with substantial exposure to silver have been disappointing in 2017. As a group, they’ve returned just 0.9% YTD.
Credit Suisse (CS) downgraded Franco-Nevada (FNV) from “outperform”’ to “neutral” on September 25, 2017.
As of October 6, 2017, this group has returned 30.1% on average—significantly higher than GDX’s 12.1% and GLD’s 10.3%.