Gold miners are making the early lists of 2023's market-leading stocks, lifting the Mining-Gold/Silver/Gems industry group into the top 10 out of the 197 sectors that IBD tracks.
XThis gleaming performance comes as gold miners are looking to cash in on higher precious metals prices. Gold and silver have gained 16% and 20%, respectively, since the start of November.
The outsize move in precious metals prices may seem peculiar. But consider that the U.S. dollar, as traded by the Invesco U.S. Dollar Index Bullish Fund (UUP) ETF, has lost 8.5% over the same period. Precious metals are priced in U.S. dollars and greenback weakness normally correlates to precious metals strength.
If the U.S. dollar weakens further, investors could consider redeploying more cash into gold miners and other precious metals stocks.
Here are six top gold miners for watchlists.
Two Gold Miners Follow Through After Topping Buy Points
Yamana Gold (AUY) and Osisko Gold Royalties (OR) have continued to gain ground after topping buy points.
Yamana hit its buy point on Dec. 27 after breaking out of a cup-with-handle base. Investors who bought the initial breakout have been rewarded as shares grind higher, now up more than 6%. In addition, there is lots of runway before the 20%-25% profit-taking zone, although it may be too late to enter low-risk positions.
The gold miner reported strong fourth-quarter operating results on Jan. 17. In addition, full-year production beat guidance by a small margin while costs remained within expectations.
Osisko Gold broke out of its cup-with-handle more recently, on Jan. 13, and has displayed modest strength since the breakout.
Royal Gold Hits Buy Point
Royal Gold (RGLD) hit a buy point on Jan. 25 and could offer a reasonable entry at this time. Nevertheless, it isn't a perfect setup for traders due to the 40%+ deep base.
Other gold and silver miners are also forming bases to keep an eye on.
Gold Fields (GFI) is an interesting stock to watch, grinding through a cup with handle and 12.96 buy point.
Franco Nevada (FNV) and Wheaton Precious Metals (WPM) are also forming bases but are still far from buy points.
Looking Ahead
Investors can gauge of how gold miners are progressing when many group members report fourth-quarter earnings in February.
Even so, look for short-term moves in metal prices to drive the vast majority of gold miner performance. Overall sector volatility should remain subdued in the short-term, with the exception of the period around next week's Federal Reserve meeting.
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