Tuesday 28 February 2023

Miners digging lower

The gold miner ETF of GDX saw a net February decline of -$4.51 (14.1%) to $27.51, largely impacted by a major downside reversal in gold and silver.

GDX, monthly



The collective of gold/silver miners fell for the time in six months. I would note the 10MA at $27.16, which was marginally settled above.

Any further downside in the main market will be a downward pressure on the miners. It doesn't necessarily mean they will be net lower, but it does mean they would be restrained to a considerable degree... even if gold/silver are net higher.

Three of the key miners...

Newmont (NEM), monthly 

Newmont saw a net February decline of -$9.32 (17.6%) to $43.61. I would note the monthly 10MA in the $48s, which was settled back below. Monthly momentum remains negative, and I'd note the March 2020 spike low of $30.11.

Barrick Gold (GOLD), monthly


A net February decline of -$3.31 (17.0%) to $16.12. I'd especially note the reversal is from around key price threshold. Momentum has stalled just under the key zero threshold. Next support are the 13/12s.

First Majestic Silver (AG), monthly


A net February decline of -$1.79 (22.7%) to $6.10. A third consecutive settlement below the 10MA, as the silver miners are massively under-performing the gold miners. The March 2020 low of $4.15 doesn't look a stretch by mid year.

Of the three, yours truly favours GOLD.
As of end February 2023... I hold no miner stocks/options.

For more of the same...

For details and the latest offers > https://www.tradingsunset.com