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A Look at Precious Metal Miners at the End of March

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Apr. 4 2018, Published 12:03 p.m. ET

Miners’ performances

Most mining companies saw an upswing in prices on Thursday, March 29, 2018, since silver rose and gold was only marginally lower. Most of the time, miners follow the price movements of precious metals, but that sometimes can change.

In this part of the series, we’ll look at the primary technical readings—moving averages and RSI (relative strength index) scores—for select miners. The miners we’ve selected for analysis are Sibanye Gold (SBGL), Yamana Gold (AUY), AngloGold Ashanti (AU), and Kinross Gold (KGC), which have YTD (year-to-date) losses of 21%, 11.5%, 6.9%, and 8.6%, respectively.

The mining-based fund, the Sprott Gold Miners ETF (SGDM), has also seen a YTD loss 5.3%.

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Moving averages

All four miners are trading above their shorter-term, 20-day moving average except for SBGL. All the miners, however, are below their longer-term, 100-day moving averages.

A stock trading at a reasonable discount to its moving average is indicative of a potential increase in its stock price, while a significant premium indicates a decrease. All four miners’ target prices are higher than their current trading prices, which could be a positive sign.

Relative strength index

On March 29, 2018, SBGL, AUY, AU, and KGC had RSI readings of 39.4, 60.9, 46.1, and 70.7, respectively. The Sprott Gold Miners ETF had an RSI score of 62.3. An RSI score above 70 suggests an impending downward price correction, while a score below 30 indicates an upward price correction.

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