Investors Should Consider Profit Taking

Source:

Credit Suisse prefers gold as base metals prices due for correction.

Credit Suisse warns that base metals markets are becoming increasingly overheated with a potential price correction looming. The prospects for gold, however, continue to improve with lower central bank sales, and reduction of hedgebooks.
While copper prices have increased more than 50%, and nickel and lead prices by 40% since February, research analyst Tobias Merath of Credit Suisse suggests that "the risk of a correction in base metals prices has also intensified strongly against the backdrop of this significant upturn in prices."

Meanwhile, thanks to reduction in global gold hedgebooks and reduced central bank gold sales, analyst Merath said gold "remains our preferred precious metal."

Merath's analysis determined that reduction of global gold hedge books by a total of 3.9 million ounces during the first-quarter 2007 "will likely continue to underpin gold prices-at least in the near term."

. . ."In light of the growing investor interest as well as upbeat data coming from the physical market, gold remains our preferred precious metal," he added. (5/14/07)

Related Articles

Get Our Streetwise Reports Newsletter Free

A valid email address is required to subscribe