Despite Corrections, Outlook for Gold, Silver Bullish
Source: Mineweb.com (6/12/07)
While the month of May generated a partial correction in precious metals prices, ScotiaMocatta, the Bank of Nova Scotia's bullion division, maintains that the outlook for gold "still remains bullish overall, although the upside going may be that much tougher, especially over the summer months."
Although silver also corrected in line for the pullback in gold, ScotiaMocatta--The Bank of Nova Scotia's bullion division--predicted that fund interest would pick up again in the precious metal. PGMs, which also followed gold, "have been surprisingly weak," according to the bullion firm, "are now well placed to recover."
In their June 2007 "Metals Matters" analysis, ScotiaMocatta analysts said, "Numerous factors emerged during the month of May to weigh on prices that is probably why the dip ran as far as it did." Among the most bearish development for gold last month was a stronger dollar. Meanwhile, central bank gold sales have also picked up...
"Going forward, it looks as though interest across the commodities is picking up again and this should see a renewed interest in gold, especially as the fundamentals for the metal remain broadly supported. In addition, the dynamics of sovereign reserves seems to be changing and these could have fear-reaching implications for the dollar, all of which could be bullish for gold."