BMO raises 2008-09 Gold Price Forecasts

Source: Mineweb.com  (10/22/07)

BMO Capital Markets has increased its 2008 and 2009 gold price forecasts to $800/oz, as well as raising the long-term forecast to $600/oz.

BMO Capital Markets has increased its 2008 and 2009 gold price forecasts to $800/oz, as well as raising the long-term forecast to $600/oz.

"Reflecting the view that other precious metals prices cluster around the broad trends set out by gold and considering each metal's unique fundamentals, we have also increased our price forecasts for silver, platinum, palladium and rhodium," said analysts Bart Melek, David Haughton, Andrea Cheung, Craig Miller, and John Hayes...

In their analysis, BMO noted that gold has outperformed most major stock markets, broad base metal price indices, currencies and bonds so far this year. "Recent physical supply/demand developments notwithstanding, the dropping U.S. dollar, inflation concerns and, more recently, a waning appetite for risk among investors were key in bringing gold to recent highs," the analysts said, adding that these will be important factors in pushing gold prices toward the $800/oz annual average price target.

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