
A Look at Gold Funds’ and Miners’ Technicals
May 22 2018, Updated 12:17 p.m. ET
Mining stock analysis
Most precious metal mining stocks have fallen over the last few months due to falling gold prices. The US dollar’s revival has also impacted precious metals and mining stocks recently.
In this part of the series, we’ll look at miners’ RSI (relative strength index) scores and implied volatility. The miners we’ve selected for our analysis—Alamos Gold (AGI), Royal Gold (RGLD), Goldcorp (GG), and Newmont Mining (NEM)—have fallen 5.4%, 1%, 4.3%, and 4.8%, respectively, over the last month.
Volatility analysis
Implied volatility measures price fluctuations in an asset price based on variations in the price of its call option. AGI, RGLD, GG, and NEM have implied volatility of 36.8%, 18.8%, 24.2%, and 21.7%, respectively.
RSI readings
An RSI score greater than 70 suggests that a stock could be overbought and that its price could fall, whereas a score below 30 indicates that a stock could be oversold and that its price could rise. AGI, RGLD, GG, and NEM have RSI scores of 47.2, 47.9, 64.8, and 52.7, respectively.