Silver continues outshining
The fall in precious metals on July 12, 2016, reversed on July 13 as all four precious metals rose. Gold edged up by 0.62% and closed at $1,343.6 per ounce. Silver, platinum, and palladium also climbed higher on the day. These three metals saw rises of 1.2%, 0.21%, and 2.4%, respectively, on July 13.
Silver once again exceeded gold in its gains, closing at $20.4 per ounce. The precious metal has seen a year-to-date rise of 46.4%.
The RSI (relative strength index) level for silver reached 79.7, high enough for a pullback. An RSI of above 70 indicates an overpriced scenario, whereas an RSI of below 30 indicates a possible rise in a stock’s price.
The RSI levels for platinum and palladium, which closed at $1,100.2 and $644.2 per ounce, respectively, are 70.8 and 77.1, respectively. The RSI for gold is 60.8, the lowest among the four precious metals. This suggests that gold could have less room for a fall compared to its three counterparts.
Mining stocks once again benefited from the rise of the precious metals and rose substantially. Major mining stocks Barrick Gold (ABX), Newmont Mining (NEM), and GoldCorp (GG) rose by 2.2%, 2.3%, and 0.1%, respectively. These three stocks combined contribute 19.6% to the changes in the VanEck Vectors Gold Miners ETF (GDX).