Thursday 29 February 2024

Miners under-performing

The gold miner ETF of GDX saw a net February decline of -$1.58 (5.6%) to $26.36, pressured by lower gold/silver.

GDX, monthly



The collective of miners were lower for a second consecutive month, once again under-performing the broader equity market. I would note the 10MA at $28.99, which was again settled beneath.

Mining bulls should be seeking to take out the 2023 high of $35.67, which will arguably require Gold sustainably >$2100, Silver >$26.00, and Copper >$4.00.  

As ever, any main market downside would be a problem to the mining stocks. Right now though, the broader US market is unquestionably m/t bullish.

Three of the key miners...

Newmont (NEM), monthly 

Newmont saw a net February decline of -$3.26 (9.4%) to $31.25. I would note the monthly 10MA at $38.33, which was settled beneath. Monthly momentum ticked lower for a second month, and is on the moderately low side.

Barrick Gold (GOLD), monthly


A net February decline of -$0.83 (5.4%) to $14.66. Momentum ticked lower, turning fractionally negative.

First Majestic Silver (AG), monthly


A net February decline of -$0.13 (2.8%) to $4.49. The February print of $4.17 is the lowest since March 2020... back when SPX was flooring at 2191.

Of the three, yours truly favours NEM.
As of end February 2024... I hold a stock position in NEM, GOLD, AG

For more of the same...

For details and the latest offers >