Precious metals miners specializing in the extraction of gold and silver from the earth had a good week. These five – four of the NYSE and one on the Nasdaq – blasted to new price highs mid-week before pulling back a bit on Friday. A widely followed gold stocks ETF also showed a new high.
Two factors are at work: inflation and fear.
That Donald Trump tariffs are basically inflationary have money managers looking for hedges and the classic for that is precious metals. That’s one of the reasons for this week’s price run-up in silver and silver stocks – now playing catch-up with the yellow metal.
Fear is the sense globally that the U. S. may have lost its economic bearings with the tariffs nonsense. So, the dollar keeps dropping and money finds its way into precious metals again.
AngloGold Ashanti
The UK-based gold stock on Monday broke above its April high, pulled back, moved to a higher high Thursday and closed lower on Friday. The 50-day moving average continues to trend upward as does the 200-day moving average. The relative strength indicator (RSI, below the price chart) shows a negative divergence from the price action.
Market capitalization for AngloGold Ashanti is $23.14 billion.
Eldorado Gold
The Canadian miner on Monday took out the April high and on Thursday moved slightly higher. The price remains above an up trending 50-day moving average and well above an up trending 200-day moving average. The RSI is diverging from the price direction.
Eldorado’s market cap is $4.34 billion.
SSR Mining
This Russell 2000 component hit a new high Friday. The stock had gapped up Monday morning and the Tuesday selling quickly filled that gap. The price trades above an up trending 50-day moving average and well above an up trending 200-day moving average.
The Denver-based miner has a market cap of $2.58 billion.
Triple Flag Precious Metals
The relatively low volume Toronto-based miner broke out above the April high on Monday. It continued to a new high on Thursday before selling came in. The stock remains above an up trending 50-day moving average and far above an up trending 200-day moving average.
Triple Flag has a market cap of $4.81 billion.
Wheaton Precious Metals
The April high was taken out with Monday’s price action. The new high of above$94 was established Thursday before sellers began to take profits. This is another of the sector with a price above an up trending 50-day moving average and above an uptrending 200-day moving average as well.
VanEck Vectors Gold Miners ETF:
The ETF on Monday broke above the April high, surged to a higher high on Thursday and then dropped again. The price action keeps it above the up trending 50-day moving average and above the up trending 200-day moving average.
With 63 holdings, the fund represents a diversified group within the sector. It’s watched as an indicator of gold stocks performance as a group.
Stats courtesy of FinViz.com. Charts courtesy of Stockcharts.com.
No artificial intelligence was used in the writing of this post.
More analysis and commentary at johnnavin.substack.com.
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