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How Miners’ Technical Indicators Compare

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Correlation analysis

In this part of the series, we’ll look at the correlation between gold and four mining stocks: Alamos Gold (AGI), First Majestic Silver (AG), B2Gold (BTG), and Royal Gold (RGLD). Mining stocks generally move with gold prices. Among these four miners, Alamos Gold has shown the highest correlation with gold this year, while B2Gold has had the lowest correlation.

The iShares Gold Trust ETF (IAU) and iShares Silver Trust ETF (SLV) tend to track gold and silver, respectively. IAU and SLV rose 0.56% and 1.4% on May 10 and rose during the week.

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Correlation

Over the past three years, AGI’s, AG’s, and RGLD’s gold correlation has declined, while BTG’s has been mixed. RGLD’s three-year, two-year, and one-year correlation with gold stands at 0.68, 0.67, 0.46, respectively. A correlation of 0.46 indicates that ~46.0% of the time, RGLD moved in the same direction as gold.

Miners’ correlation with gold is a crucial factor for investors to consider, as gold dominates the four precious metals. Changes in gold affect the other precious metals as well as most mining stocks.

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