Friday 30 June 2023

Miners struggling

The gold miner ETF of GDX saw a net June decline of -$0.80 (2.6%) to $30.11, largely due to a second month of downside in gold and silver.

GDX, monthly



An intra month high of $32.29, but swinging lower to $28.76, and settling at $30.11. I would note the 10MA at $29.12, which was settled above. Monthly momentum ticked lower, but remains positive.

The central concern should be that any renewed downside in the main market would 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 June gain of +$2.11 (5.2%) to $42.66. I would note the monthly 10MA at $44.74, which was settled beneath. Monthly momentum ticked upward, but remains negative. Support $36s, with major upside resistance of the $45s.

Barrick Gold (GOLD), monthly


A net June gain of +$0.05 (0.3%) to $16.93. May's bearish engulfing candle did play out, with a low of $15.85. Momentum is flat-lining, on the fractionally positive side. Support $12s, with upside resistance of the mid $19s.

First Majestic Silver (AG), monthly


A net June decline of -$0.12 (2.1%) to $5.65. The performance is truly lousy, both to the sector and main market. A seventh consecutive settlement below the 10MA. I'd note the March 2020 low of $4.15... as appears an eventuality.

Of the three, yours truly favours Newmont, as it has less exposure to copper than Barrick.
As of end June 2023... I hold no miner stocks/options.  

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