Gold Miners Slaughtered (Part III)

Published 07/21/2015, 01:40 PM
Updated 07/09/2023, 06:31 AM
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Gold mining stocks are oversold. That goes without saying. On Monday we looked at the distance that the gold and silver mining index traded below its 200-day moving average. Today we look at the 3-month rolling performance for the index.

As of the current price, precious metals mining index has lost over 30% in the last 3 months and almost 50% in the last 12 months (not shown in the chart below). After such a long bear market, which has already dropped by a staggering amount, the recent selloff just adds fuel to the fire for the gold bugs. And while more oversold levels have occurred throughout history, the current one still goes down as a mini-panic. Basically, the speed of the fall has created a 2-standard deviations selling event.

Chart Of The Day: Gold miners three month performance is down 30%!!!

Philadelphia Gold And Silver Index
Source: Short Side Of Long

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