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Why Most Mining Stocks Fell on Friday

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Miners over the past month

Precious metal mining stocks follow trends in precious metals, and they’re a very volatile segment of the equity markets. Most mining stocks have risen over the past month due to a substantial rebound in precious metal prices. However, Friday, September 15, was a down day for gold, silver, and platinum.

In this part of our series, we’ll look at Alamos Gold (AGI), First Majestic (AG), B2Gold (BTG), and Royal Gold (RGLD). Among these four miners, AGI, AG, and RGLD have lost 1.3%, 1.5%, and 0.54% respectively, while BTG has increased by a marginal 0.74%.

On a year-to-date basis, Alamos, B2Gold, and Royal Gold have risen 8.2%, 14.3%, 6.2%, and 41.6%, respectively. However, First Majestic has also seen a year-to-date or YTD loss of 8.1%. The iShares MSCI Global Gold Min fund (RING) also marginally fell on Friday but has a YTD gain of 15.8%

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Miners’ technicals

All four miners except First Majestic are trading above their 100-day moving averages. AG and BTG are above their 20-day moving averages, but AGI and RGLD are below their 20-day moving averages.

A reasonable premium indicates that a price may fall. A considerable discount, on the other hand, suggests that a stock may see an upward correction. 

All four miners’ target prices are above their current trading prices. When a stock’s current price is above its target price, it indicates a negative outlook. A target price above the current price appears positive.

The relative strength or RSI levels for AGI, AG, BTG, and RGLD are 43, 58.3, 57.7, and 52.8, respectively. RING’s RSI level is 59.9.

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