Downward Corrections Mean Opportunity

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Toronto’s Griffiths McBurney, which has just initiated coverage on gold, forecasts an average $700/oz gold price this year with the potential of significantly higher short-term moves in price.

Initiating coverage on gold, Toronto-based Griffiths McBurney & Partners (GMP) predicts the combination of a weak U.S. dollar, fears of inflation, a possible downward market correction, speculation over central bank gold purchases, and continued investment demand will drive gold prices higher this year.

While metals analysts Craig West, David Charles, Jacques Wortman, and Duncan McKeen believe gold will average $700/oz this year and next, gold also has the potential "for significantly higher short-term moves in price.". . "We believe gold prices will continue their current trend upwards, and also believe that some of the volatility seen in 2006 will persist, though at reduced levels," the analysts forecast. "We expect volatility in gold price will continue this year although at a reduced level than was seen in 2006. (5/14/07

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