Gold Fields Ltd

AngloGold Ashanti that for the last three years, its management’s focus has been on the widening of its margins on a sustainable basis.

The RSI levels of our four select mining giants have all increased lately due to their higher stock prices.

It’s expected that precious metal mining stocks will follow precious metals. So it’s crucial to know which stocks are closely associated with precious metals.

As automobile catalysts comprise ~44% of the demand for platinum, the Volkswagen scandal curbed the demand for diesel-fueled cars that use platinum as a catalyst. This pulled down the already depressed platinum and comparatively strengthened palladium.

Gold miners’ stocks have underperformed most of the market indices and gold itself. GDX has significantly underperformed GLD since 2008.

On January 12, 2018, precious metals were once again on a rising streak, which also led to increasing prices for mining shares.

When analyzing platinum markets, it’s important to compare the metal’s performance with that of gold, which is the most crucial of the precious metals.

In this article, we’ll discuss the gold-silver, gold-platinum, and gold-palladium spreads. These three spreads stand at 77.9, 1.38, and 1.23, respectively.

If we look at the YTD correlations of the select mining shares to gold, there has been a reasonable fall. On a YTD basis, Sibanye Gold has the least correlation to gold.

Gold Fields, Coeur Mining, Hecla Mining, and IamGold have call implied volatilities of 40.4%, 46.7%, 33.6%, and 44.3%, respectively.

In this part of the series, we’ll look at the gold-silver spread, the gold-platinum spread, and the gold-palladium spread.

In September 2017, palladium prices overtook the price of platinum.

After a substantial slump on Monday, gold futures for December delivery rose 0.5% on Tuesday and closed at $1,281.7 per ounce.

The iShares MSCI Global Gold Min (RING) and the VanEck Vectors Junior Gold Miners (GDXJ) have seen YTD (year-to-date) gains of 6.4% and 9%, respectively.

AngloGold Ashanti has had the lowest correlation with gold this year, while Gold Fields has had the highest correlation with gold.

The iShares MSCI Global Gold Min (RING) and the Sprott Gold Miners (SGDM) rose with metals on Monday, climbing 1.2% and 0.83%, respectively.

The iShares MSCI Global Gold Min (RING) and the VanEck Vectors Junior Gold Miners (GDXJ) fell 2.6% and 1.5%, respectively, on October 26.

When investors look at mining stocks, it’s important that they do a technical analysis of the stocks.

The iShares MSCI Global Gold Min (RING) and the VanEck Vectors Gold Miners (GDX) have fallen 1.3% and 1.4%, respectively, on a five-day-trailing basis.

On October 23, Alamos, First Majestic Silver, Sibanye Gold, and Gold Fields had call implied volatilities of 46.9%, 54.6%, 63%, and 40.4%, respectively.

Most precious metals had a down day on Tuesday, October 10, despite the recent overall upward movement in precious metals.

Among the miners that we’re looking at in this part of the series, Sibanye Gold has the lowest correlation to gold on a YTD basis, while Gold Fields has the highest correlation to gold.

On October 5, Gold Fields, Agnico-Eagle, Cia De Minas Buenaventura, and AngloGold had implied volatility readings of 40.4%, 33.6%, 35.3%, and 40.9%, respectively.

Among these four mining stocks, Goldcorp has the lowest correlation with gold on a YTD basis, while Royal Gold (RGLD) has the highest correlation.

Among the four miners that we’re analyzing here, Sibanye Gold has the lowest correlation with gold on a one-year basis, while Gold Fields has the highest.

Among the four miners we’re looking at, Gold Fields has the highest correlation to gold on a YTD basis, while Sibanye Gold has the lowest correlation to gold.

Gold futures for September expiration have risen ~3.9% over the past one-month period. Silver, platinum, and palladium have followed the same track as gold.

In this part of the series, we’ll look at some important technical indicators, including volatility figures and RSI levels for major miners.

Mining stocks have bounced back from the choppy markets seen over the past week.

Investors are constantly speculating about the impact on precious metals of a possible Fed rate hike in June. Let’s look at some 14-day RSI scores and implied volatility.

Among the leveraged mining funds, the Direxion Daily Gold Miners ETF (NUGT) and the Proshares Ultra Silver ETF (AGQ) have seen considerable losses over the past month.

Turbulence in markets due to the viability of the Trump Administration, the upcoming French elections, and the Brexit vote caused precious metals to rise.

Monitoring the implied volatilities of large mining stocks is important. We should also watch their RSI (relative strength index) levels, particularly in the wake of changing precious metals prices.

Precious metal mining stocks are known to closely track the performances of precious metals.

Sibanye Gold has the closest correlation to gold on a YTD basis among the four miners under review.

Precious metals prices have risen from the ten-month lows they saw in December 2016. As a result, most mining stocks have also risen substantially.

Gold prices tumbled on Tuesday, February 14, as the US dollar rose after the US Federal Reserve chair, Janet Yellen, seemed optimistic about raising interest rates.

The rate hike phenomenon in December 2016 played negatively for precious metals.

Sibanye Gold, Gold Fields, Agnico-Eagle Mines, and Pan American Silver had RSI levels of 51.4, 54.6, 59.4, and 58.8, respectively.

The gold-platinum spread was approximately 1.6 on January 11, 2017. Its RSI (relative strength index) was as low as 40.

Precious-metal-based funds such as the ProShares Ultra Silver (AGQ) and the Direxion Daily Gold Miners (NUGT) have seen a revival in their price during the last month.

Large speculators and traders continued to reduce their bullish net positions in gold futures markets last week for the eighth consecutive week.

Precious metals had a great start to 2016. Franco-Nevada’s correlation rose from an ~0.59 three-year correlation to an ~0.63 one-year correlation.

Gold prices for February expiration fell on the last trading day of the year. Gold fell 0.53% and closed at $1,152 per ounce on December 30, 2016.

Precious metals had a great start to 2016, but they’ve been falling since Donald Trump won the US presidential election. As a result, mining stocks have also been falling.

Palladium has seen a YTD rise of a whopping 32.5%, which is higher than the rise in platinum, silver, and gold. Earlier, palladium was underperforming its precious metal peers.

Mining companies that have high correlations with gold include Sibanye Gold (SBGL), Gold Fields (GFI), Silver Wheaton (SLW), and Franco-Nevada (FNV).

Palladium has seen a year-to-date rise of a whopping 32.5%, which is higher than the rise in platinum, silver, and gold. Earlier, palladium was underperforming its precious metal peers.

Last week was rough for precious metals. Gold, silver, platinum, and palladium all fell. Gold had the biggest weekly fall in about three years.

The current weakness in the rand made it fall to all-time lows against the US dollar in early 2016 but has helped mining companies.