Precious metal trends
Precious metal mining shares saw a mixed day on Wednesday, July 12. Usually, a fall in precious metals takes down mining companies as well, and a rise in precious metals gives miners a boost. Over the past month, miners have seen a significant drop in their prices.
In this part of the series, we’ll look at the technicals for mining stocks Alacer Gold (ASR), Hecla Mining (HL), Kinross Gold (KGC), and Eldorado Gold (EGO). Stronger equity markets and yields could have impacted precious metals and precious metal mining stocks.
Hecla Mining and Kinross Gold have risen 0.38% and 25.4% YTD (year-to-date), respectively. Alacer Gold and Eldorado Gold have fallen 6.7% and 24.5% YTD, respectively. The mining-based VanEck Vectors Gold Miners ETF (GDX) is trading at a marginal rise of 3.9% YTD.
Alacer Gold and Eldorado Gold are trading below their shorter-term 20-day and longer-term 100-day moving averages. Hecla Mining is trading below its 100-day moving average and above its 20-day moving average. Kinross Gold is trading at a premium to its 100-day moving average and below its 20-day moving average.
A premium over a stock’s price is an indicator of a downward correction in price. A decent discount to a stock’s price suggests a potential price increase.
The target prices for these miners remain significantly higher than their current trading prices, which suggests a positive outlook for these companies. Most of the mining companies saw their RSI levels rise over the past few days.
The precious metal–based mining funds that rose on Wednesday, July 12, included the Sprott Gold Miners ETF (SGDM) and the iShares MSCI Global Gold Miners ETF (RING).
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