When you look at mining stocks’ performance, it’s important to analyze their correlation with gold. These stocks typically take their directional cues from gold, which is the most dominant among precious metals.
Gold fell for the third consecutive day on October 18, 2017, as the US dollar regained strength. However, October 19 was an up day for gold and silver.
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.
The outlook for palladium looks bright due to the possible rise in demand from China. Switzerland witnessed its net exports of palladium rise in August.
The miners that experienced the greatest losses during the past five trading days were IamGold (IAG), Silver Wheaton (SLW), Goldcorp (GG), and Primero Mining (PPP). These miners fell 7.5%, 6.0%, 6.2%, and 57.5%, respectively.
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 prices fell once again on Wednesday, July 26, 2017. Gold futures for August expiration were 0.22% lower for the day, settling at $1,249.4 per ounce.
Gold hit a four-week high on July 24, 2017. Gold futures for August expiration touched a high of $1,259 per ounce on the day, ending up at $1,254 per ounce.
Mining stocks have bounced back from the choppy markets we’ve seen over the past month. On July 20, most mining stocks saw upward movements in their prices.
In this part of the series, we’ll look at the technicals of mining stocks such as New Gold (NGD), Newmont Mining (NEM), Gold Fields (GFI), and Primero Mining (PPP).
Precious metals saw an up-day on July 20, 2017, after Mario Draghi said that policymakers would discuss potential changes in the bond-buying program in autumn.
On June 6, the implied volatilities of Alamos Gold, Primero Mining, Silver Wheaton, and Franco-Nevada were 51.1%, 90.6%, 30.8%, and 24.5%, respectively.
Physical demand fell in 1Q17 Physical gold demand fell 18% in 1Q17, according to the WGC (World Gold Council). Investors most likely dumped the metal to bet on riskier assets after the US presidential election. The demand in 1Q17 was 1,034 tons, the lowest in 11 years. ETF inflows suffered greatly compared with last year, […]
US dollar drops Besides geopolitical news, another important factor that has contributed to the rise of gold is the fall of the US dollar. The US dollar (UUP), depicted by the US dollar index, or DXY, dropped 0.27% on April 17 after hitting close to a four-week high on April 10. The DXY had fallen 1.9% […]
Now that mining companies have begun witnessing revivals from their losses earlier this year, it becomes crucial to examine the volatility figures and RSI.
For those investors interested in parking their money in mining shares, it’s crucial to understand which stocks are closely tied to precious metals and which aren’t.
Physical gold demand India and China constitute ~50% of the global demand for physical gold. These markets are price sensitive, so when gold prices fall, physical gold-buying in these markets provides support for gold. In this article, we’ll see if demand from India and China could accelerate in 2017. Indian gold demand India’s demand for gold […]
It’s important to monitor the implied volatilities of large mining stocks as well as their RSI levels—especially after the carnage in precious metal prices.
The SPDR S&P Metals and Mining ETF and the Vaneck Vectors Junior Gold Miners Fund have seen YTD gains of 6.9% and 14.8%, respectively, as of January 11.
India’s demonetization As India moved to replacing its higher-denomination notes, the impact was far felt. The country’s tax authority is making a list of dealers that they believe could be involved in suspicious activity. The ban on gold imports after the demonetization has put many dealers in danger. Axis Bank, India’s third-biggest private sector lender […]
Randgold is the most correlated with gold on a YTD basis among our four mining companies. Primero Mining is the least correlated with gold, mainly due to its YTD losses.
Fluctuations in the dollar are a major determinant of changes in the prices of precious metals. Gold and the US dollar mostly have an inverse relationship.
While many investors are watching the Fed’s interest rate stance, others are looking at the fundamentals of South African precious metal mining companies.
After Donald Trump won the US presidential election on November 8, gold initially climbed above $1,300 per ounce. Shortly after that, it was back its original trading range and fell even lower after that.
Precious metals saw some good news at the beginning of 2016. However, lately, precious metals prices have been falling slowly. As a result, mining stocks have also fallen.
Mining companies that have high correlations with gold include Primero Mining (PPP), Silver Wheaton (SLW), Franco-Nevada (FNV), and RandGold Resources (GOLD). These companies have risen significantly year-to-date.
The precious metals market has risen in 2016. Despite this trend, it’s important to know which mining stocks are overperforming and which are underperforming precious metals.
The precious metal market has risen in 2016. Despite this trend, it’s important to know which mining stocks are overperforming and underperforming precious metals.
The precious metals market has skyrocketed in 2016. Despite this trend, it’s important to know which mining stocks are overperforming and which ones are underperforming precious metals.
The precious metals market has skyrocketed in 2016. But it’s important to know which mining stocks are overperforming and underperforming precious metals.
Gold’s price rally on September 6, 2016, was the biggest increase in the precious metal since June. July and August were disappointing for precious metals.
The precious metals market rose in 2016. Gold’s correlation with Agnico-Eagle has risen from a 0.59 three-year correlation to a 0.64 one-year correlation.
Mining shares had a mixed reaction on Tuesday, August 16, despite the rise in precious metals. Sibanye Gold (SBGL) and Agnico Eagle Mines (AEM) rose by 0.74% and 0.06%, respectively.
Most mining companies reversed 2015 losses in 2016 and have posted substantial gains. The correlation between mining stocks and precious metals is high.
Usually, the US dollar and precious metals follow opposite paths. However, over the past month, the US dollar and gold have been moving together, both rising.
