TONY LESIAK, Macquarie Capital Markets
"We are still bullish on gold into 2007 and maintain an average spot gold price forecast of $750/oz. In the near term, we believe the prospect for gold prices will largely hinge on three main factors: the performance of oil and the dollar, and the abatement of central bank selling. We believe central bank selling will slow after September 26, UBS forecasts a 69 average WTI oil price (63.51 current WTI spot) and forecasts a 1.40 Euro/dollar exchange rate in Q2 2007, producer hedge buy-backs and hedge fund short covering could also be notable catalysts into 2007." (September 18, 2006)

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