Gauging Gold Miners’ Direction this Month
In this article, we’ll focus on miners’ moving averages and relative strength index (or RSI) readings.
Miners had a good start to 2018, as they saw a surge in price due to the rebound in precious metals.
Mining stocks tend to take their cues from gold movements. For our correlation analysis, we’ll compare a few different mining stocks to gold.
Much of the attention in precious metal movements is based on fluctuations in the US interest rate.
Precious metals’ reaction was also due to economic numbers indicating the health of the US economy in general.
Among the core indicators playing precious metal prices is the rise in US inflation, which is currently at 2.2%—almost at growth of 1% compared to the start of 2016.
Gold and silver spot prices fell 0.40% and 1.2%, respectively, on Friday, February 16.
China’s January 2018 PMI (Purchasing Managers’ Index) came in at 51.3. As per a poll conducted by Reuters, economists were expecting the PMI to come in at 51.5.
Aggregate financing in China (MCHI), which reflects the total funds provided by a financial system to its nonfinancial sectors and households, came in at 3.06 trillion yuan in January 2018.
China’s auto sales (XLY) in January 2018 increased 11.6% year-over-year (or YoY) to 2.81 million units.