Why Precious Metal Mining Stocks Rose on Monday, December 4



Mining stocks this week

Let’s look now at mining stocks and their price movements compared to their moving averages. We’ll look at Gold Fields (GFI), Randgold Resources (GOLD), Hecla Mining (HL), and Iamgold (IAG).

Among these four miners, only Hecla Mining has seen a YTD (year-to-date) fall of 29.8%. GFI, GOLD, and IAG have YTD gains of 34.2%, 19.2%, and 36.9%, respectively. The VanEck Vectors Junior Gold Miners ETF (GDXJ) has a marginal YTD loss of 0.79%.

Most of the mining stocks fell on Monday, December 4. Randgold Resources fell 0.17%, and GDXJ fell 0.70% that day.

Article continues below advertisement

Moving average readings

All four miners that we’re covering in this series are trading below their 20-day and 100-day moving averages except Gold Fields, which is trading close to its 20-day moving average. A reasonable discount below the 20-day and 100-day moving averages suggests a potential revival in price, while a premium indicates a likely fall in price.

The select miners’ target prices are higher than their current trading prices, which indicates that their stocks could rise.

RSI indicator

GFI, GOLD, HL, and IAG have RSI (relative strength index) levels of 61.1, 52.8, 34.9, and 24.2, respectively. An RSI level below 30 indicates a potential upward movement in price, while an RSI higher than 70 suggests a possible downturn in prices. GDXJ’s RSI level is 43.2.


More From Market Realist