Are Miners Moving in Accordance with Precious Metals?



Miners’ performances

Usually, precious metals miners’ shares follow movements in precious metals. Precious metals have risen over the past few days, supporting mining companies.

In this article, we’ll look at the primary technical readings—that is, the moving averages and RSI (relative strength index) scores—of a select group of miners. The silver miners we’ve selected for analysis are Royal Gold (RGLD), Wheaton Precious Metals (SLW), Barrick Gold (ABX), and IAMGOLD (IAG).

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All four of these mining companies except for Royal Gold have fallen YTD (year-to-date). RGLD has risen 8.8% YTD, while SLW, ABX, and IAG have seen YTD falls of 4%, 5.9%, and 6.5%, respectively. The mining fund we’ve added to this discussion is the VanEck Vectors Gold Miners ETF (GDXJ), which has fallen 3.4% during the same period.

All four of the miners under discussion have seen rises in their prices as of April 26, 2018. RGLD, SLW, ABX, and IAG have risen 0.43%, 0.95%, 0.96%, and 1.3%, respectively, since May 1. GDXJ has risen 0.55% as of the same day.

Moving averages

AG, SLW, and CDE are trading above their 20-day and 100-day moving averages, while HL is trading above its 20-day moving average and below its 100-day moving average.

A stock’s trading at a huge discount to its moving average suggests a potential rise in its price, while its trading at a significant premium indicates a potential fall. All four miners’ target prices are considerably higher than their current trading prices, suggesting potential price rises.

RSI scores

On April 26, AG, SLW, CDE, and HL had RSI (relative strength index) scores of 64.9, 64.8, 69.5, and 65.5, respectively. GDXJ had an RSI score of 55.6.


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