ABN Amro Predicts Key Precious Metals to Surge
Source: Reuters (3/16/07)
Prices of key precious metals would surge this year and next because of contracting mine supply, a decline in the dollar and lower sales by Europe's central banks, ABN Amro said yesterday.
The average gold price was likely to jump to $695 an ounce this year and to $740 in 2008 from $604 last year, it said in its latest Global Mining report.
...Support would come from dollar weakness, positive supply-demand fundamentals underpinned by constrained mine supply, demand growth, geopolitical tensions and the fact that signatories to the European gold agreement were unlikely to meet their full 500 tons a year of allocated gold sales, ABN Amro said.