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2016 Year of gold mining stocks?

Driven by the rise of gold

Besides direct investment in gold physical or ETF, stock investors might want to look at gold mining stocks when gold is first placed best performing asset class year-to-date.

Relative performance ytd by asset class

Relative performance ytd by asset class | Source: Finviz.com

 

Consider the sterling performance of some of these stocks at a time many markets are in bear territory. Year to year, gold price is still in a down trend but these two stocks Newmont Mining and Barrick Gold print new 52-week high.

 

Newmont Mining

Newmont mining weekly chart 2011 - present

Newmont mining weekly chart 2011 – present | Source: Tradingview.com

  1. Down trend from 2012 – 2015.
  2. Before closing March, Newmont stock price have already set new 52-week high.
  3. Decisive move above 2014-2015 high will terminate previous down trend.

 

Barrick Gold

  1. Very similar to Newmont’s price action.
  2. Price persisting above 13.70 should be seen as reversing previous trend.
Barrick gold weekly chart 2011 - present

Barrick Gold weekly chart 2011 – present | Source: Tradingview.com

Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.

“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.

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