three gold bars on stock market chart
Some precious metals stocks have new price highs today as stocks in general are being unloaded. It’s generally considered a fear trade when tech, internet and financials are dumped and money begins piling into the mining sector like this. It’s not necessary to understand all of the reasons behind the condition if you’re analysis is simply price chart-based.
Whether this stems from worry over the possibility of continuing trade wars with China or interest rate changes or a long drawn-out impeachment saga, the main thing is: higher gold stock prices are kicking in here as the wider market tanks today. This is true even though the price of underlying metal remains lower than its 52-week high.
Here’s the weekly gold chart:
Gold weekly price chart, 12 3 19.
The metal is having a positive day but clearly remains below the August/September peak. That certain mining stocks are breaking above their own previous price ranges is worth thinking about.
Yamana Gold is Canadian-based, New York Stock Exchange-traded and today popped above that late summer level and above its October high. Here’s what the daily chart looks like:
Yamana Gold daily price chart, 12 3 19.
It may not seem like much, but that very small but definite new 52-week high for Yamana suggests positive expectation from investors.
Coeur D Alene Mines is another NYSE-listed gold miner showing remarkable price strength here:
Coeur D Alene Mines daily price chart, 12 3 19.
Today’s 52-week high price takes out the previous mid-November high and you can see clearly how much higher it is than the August/September levels where the metal itself peaked.
Franco Nevada is NYSE-traded and hit a 2019 high today. Here’s the daily chart:
Franco Nevada daily price chart, 12 3 19.
Even though it’s barely a new high and price then backed away, that Franco Nevada achieved the new high is significant from a pure price chart analysis view.
Sibanye Gold is a South African-based miner that trades on the New York Stock Exchange. Here’s the daily chart:
Sibanye Gold daily price chart, 12 3 19.
The gap up to an even higher high on positive volume indicates strong investor enthusiasm for the earnings prospects of Sibanye.
These 4 mining companies are showing unusual strength especially given how far the underlying metal is from its own 52-week high. Other factors are involved, of course, including specific financials for each of these companies — and then there are certain currency considerations, as well.
Not all mining stocks are hitting new highs here: for example, the 2 big ones that trade on the NYSE — Newmont and Barrick — are still playing catch-up. I’ve mentioned both of these previously on the Forbes blog right here.
I’ve mentioned the unusual pattern on the longer-term gold chart right here.
Stats courtesy of FinViz.com.
I do not hold positions in these investments. No recommendations are made one way or the other. If you’re an investor, you’d want to look much deeper into each of these situations. You can lose money trading or investing in stocks and other instruments. Always do your own independent research, due diligence and seek professional advice from a licensed investment advisor.