How Miners Rebounded in the Past Month



Miners’ technicals

Most precious metal miners have seen an upswing in their prices over the past week. Although August 3, 2017, witnessed falls for most precious metals, miners saw a mixed day. The miner-tracking fund the VanEck Vectors Gold Miners ETF (GDX) fell 0.31%.

In this part of the series, we’ll look at some important technical indicators, including volatility figures and RSI levels, for major mining stocks such as First Majestic Silver (AG), Gold Fields (GFI), Eldorado Gold (EGO), and Iamgold (IAG).

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Implied volatility

Call-implied volatility is a measurement of the fluctuations in an asset’s price when it comes to fluctuations in the price of its call option. On August 3, 2017, the call volatilities for First Majestic Silver, Gold Fields, Eldorado Gold, and Iamgold were 53.5%, 44.1%, 50.5%, and 47.0%, respectively. The volatilities of mining stocks are usually greater than the volatilities of precious metals.


The RSI (relative strength index) is a measurement that indicates whether a stock has been overbought or oversold. If a stock’s RSI is above 70, it may be overbought, and its price may fall. If a stock’s RSI is below 30, it could be oversold and might correct upward.

RSI levels for the miners mentioned above have recently witnessed revivals. First Majestic Silver, Gold Fields, Eldorado Gold, and Iamgold have RSI levels of 48.5, 63.6, 19.6, and 64.0, respectively. There’s been a significant rebound in the prices of precious metals.

These four miners have 30-day trailing gains since last month was good for mining shares. Only Eldorado Gold has a 30-day trailing loss.

Mining-based funds such as the VanEck Vectors Gold Miners ETF (GDX) and the Global X Silver Miners ETF (SIL) are also affected by changes in precious metal prices. These two funds have risen 8.5% and 5.6%, respectively, year-to-date.


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