ABN Amro Predicts Key Precious Metals to Surge

Source:

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.

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.

Related Articles

Get Our Streetwise Reports Newsletter Free

A valid email address is required to subscribe