New Gold Inc.

IAG stock could continue to gain traction due to its high operational leverage, at least as long as the upward trend in gold prices continues.

IAMGOLD’s (IAG) 2Q17 production was 223,000 ounces of gold—growth of 26,000 ounces or 13% year-over-year (or YoY).

First Majestic, New Gold, Agnico, and Silver Wheaton now have RSI scores of 60.5, 56.2, 57.6, 59.6, respectively.

Gold price’s reversal this year has created opportunities in gold stocks. The SPDR Gold Shares ETF (GLD) had gained 11% year-to-date as of Friday.

During the past week, average hourly earnings, excluding the farming industry, were below analysts’ expectation of 0.10%.

Intermediate gold miners are smaller than senior gold miners in terms of production and market capitalization, but they are still generally liquid.

Looking ahead for 2018, industry analysts stated in a Bloomberg article that they expect gold to perform better early in the year led, by the “January effect.”

NGD and HL are both trading below their longer-term 100-day moving averages.

Gold is the most influential precious metal, and most miners follow its price trends.

New Gold, Agnico-Eagle Mines, Franco-Nevada, and Cia de Minas Buenaventura have call-implied volatilities of 45.2%, 24.4%, 21.7%, and 31.2%, respectively.

The PowerShares DB Gold Fund (DGL) and the VanEck Merk Gold Trust (OUNZ) rose 2.2% over the five trading days leading up to December 27, 2017.

All four precious metals except palladium witnessed an up day on December 18, 2017. Platinum touched the day’s high of $915.3 and ended up at $913.2 per ounce.

Often, gold, silver, platinum, and palladium react to the overall risk in the market.

For India, gold imports have fallen 16% in value to ~$2.9 billion in October 2017 compared to $3.5 billion in the corresponding month last year.

New Gold and Goldcorp have seen upward trends in their correlations with gold, while Newmont Mining has seen its correlation decline.

The Sprott Gold Miners (SGDM) and Global X Silver Miners (SIL) have fallen 0.21% and 1.9%, respectively, on a 30-day-trailing basis.

While China and Russia have the fifth and sixth largest gold reserves globally, the movements in them are the most watched by gold investors the world over mainly because these economies have been quite vocal about adding gold reserves.

Mining stocks’ correlation with precious metals Most of the time, mining stocks’ performance follows that of precious metals. However, they can deviate. Correlational analysis can give investors some insight into how mining stocks relate to gold and silver. In this part of our series, we’ll compare Royal Gold (RGLD), Goldcorp (GG), New Gold (NGD), and Newmont Mining (NEM). Mining […]

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.

Gold reached its two-week high price of $1,294.5 an ounce on Tuesday, October 10, and ended the day at $1292.1 per ounce.

The precious metals continued rising on Wednesday, and gold also witnessed a rebound.

New Gold has a three-year correlation of 0.67 and a one-year correlation of 0.88 to gold.

Most mining shares witnessed an up day on Monday, September 25, 2017, as precious metals increased over the ongoing global tensions.

Precious metals have maintained upward movement over the past month as geopolitical tensions hover.

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

Gold and silver-based funds such as SGOL and SIVR are impacted by changes in precious metal prices. They fell due to the fall in precious metals on Friday.

The platinum industry is now headed for its third-straight year of surplus, likely due to the higher demand for petroleum-based cars.

Metal stocks As we study the impact of global variables on precious metals and the mining sector, we should also analyze the relationship between mining stocks and gold. Correlational analysis can help us compare price movement in mining stocks and the metal. In this part of our series, we’ll examine New Gold’s (NGD), Newmont’s (NEM), Coeur […]

On June 6, 2017, the US Dollar Index plunged to its lowest level in seven months, which helped dollar-denominated precious metals regain value.

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.

Fears surrounding a potential upcoming interest rate hike took over precious metals recently, and they fell at the beginning of May 2017.

Gold futures for June expiration fell 0.47% and ended May 18 at $1,252.8 per ounce. The call implied volatility in gold rose to 11.3%.

The US Dollar Index, which prices the dollar against a basket of six major world currencies, has risen ~0.46% on a trailing-five-day basis.

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.

Another important phenomenon that played on the fall of precious metals on Wednesday, April 19, was the upswing of the US dollar.

As of April 6, 2017, the volatilities of New Gold (NGD), Agnico Eagle (AEM), Silver Wheaton (SLW), and Franco-Nevada (FNV) were 55.5%, 36.6%, 34%, and 30.1%, respectively.

As of April 4, 2017, the volatilities of New Gold (NGD), Agnico Eagle Mines (AEM), Silver Wheaton (SLW), and Randgold Resources (GOLD) were 51.5%, 35.4%, 61.7%, and 54.1%, respectively.

When analyzing the precious metals market, it’s important to take a look at the relationship between gold and silver.

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

The demand for platinum has been very fragile over the past few years due to concerns about sales of diesel-based vehicles.

Platinum is known for its use in jewelry and as an autocatalyst for diesel-based automobile engines. The demand has been very fragile over the past few years.

The demand for platinum has been very fragile over the past few years, affected by the reduced market forecast for sales of diesel-based vehicles.

Many of the recent changes in precious metals have been determined by changes in the interest rates offered on US Treasuries.

Precious metal mining stocks are known to closely track the performance of their respective precious metals. Mining stocks often show more volatility than metals.

The gold-platinum spread was ~1.2 on January 11, 2017. Platinum’s RSI (relative strength index) was 38.

Mining companies that have high correlations to gold include Royal Gold (RGLD), Goldcorp (GG), New Gold (NGD), and Newmont Mining (NEM).

The correlation between gold and the US Dollar Index is -0.36. It means that about 36.0% of the time, gold and the dollar move in opposite directions.

The substantial returns of most mining companies have been due to safe-haven bids that boosted gold and other precious metals.

Many of the fluctuations in precious metals have been a result of speculation about the Federal Reserve’s interest rate stance.