Canadian gold miner IAMGOLD Corp (USA) (NYSE:IAG) enjoyed a rare up-day in August, as IAG stock bounced back Thursday on gold’s rebound.
December gold futures finished up 0.4% at $1,317.10 ounce — a small bounce-back after hitting roughly two-month lows. The spark: a dip in the dollar (NYSEARCA:UUP), which was on pace to finish lower on Thursday.
IAMGOLD shares were up 2% on Thursday after giving up ground for most of August. IAG shares have been sitting close to oversold Relative Strength Index (RSI) readings for a couple of weeks.
The problem: There’s little support in sight.
IAG shares crashed through their 50-day moving average two weeks ago, and the stronger 200-day support line is another 20% lower from here. Moreover, shares’ short-term 20-day moving average just collapsed below the 50-day, which is a somewhat bearish signal.
Still, the $3.75 area could act as price support. IAG stock was rebuffed from the level back in May, then danced around it for weeks in June before finally cracking through on its way to its August highs. This is the first time IAMGOLD has tested the level since June.
IAMGOLD joined a host of other gold miners rising on the news. Among the biggest-volume gainers were Yamana Gold Inc. (USA) (NYSE:AUY, +5.5%), Barrick Gold Corporation (USA) (NYSE:ABX, +4.8%) and Kinross Gold Corporation (USA) (NYSE:KGC, +4.5%).
As of this writing, Robert Martin did not hold a position in any of the aforementioned securities.
