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How Mining Stocks Performed in September 2017

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Oct. 3 2017, Published 2:13 p.m. ET

Mining stocks tumbled

Friday, September 29, was yet another down day for precious metal mining stocks. Most of the time, the reaction among these mining stocks mirrors precious metal prices themselves.

In this part of our series, we’ll compare the performances of Royal Gold (RGLD), Goldcorp (GG), Newmont Mining (NEM), and Silver Wheaton (SLW).

Among these four miners, Royal Gold and Newmont rose 35.8% and 10.1%, respectively. Goldcorp and Silver Wheaton fell 4.7% and 1.2%, respectively, during the same period, while the VanEck Vectors Gold Miners (GDX) rose 9.8% on a year-to-date basis.

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Moving averages

All four of these miners are trading below their 20-day moving averages, while Royal Gold and Newmont are trading above their 100-day moving averages. Goldcorp and Silver Wheaton are trading below their 100-day moving averages as well.

Remember, a big discount below the 20-day and 100-day moving averages suggests a possible revival in price, while a big premium suggests a possible fall. The target prices of these four miners are considerably above their current trading prices, and such a trend could indicate an upcoming increase in prices.

RSI levels

Due to the subsiding prices of precious metals over the past week, mining stocks and their RSI (relative strength index) levels have also fallen. RGLD, GG, NEM, and SLW now have RSI levels of 25.9, 28.1, 43.1, and 23.2, respectively. Remember, an RSI level lower than 30 indicates a possible upward movement in price, while an RSI below 70 indicates the possibility of a downturn in price.

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