Credit Suisse Forecasts Gold Testing $700/oz

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In a recent analysis commodity analysts Tobias Merath and Eliance Tanner said gold recovery is "warranted by sound fundamentals" including new investment in gold ETFs and encouraging signs in the physical market.

Credit Suisse declared that "gold and silver prices are back on the road to recovery"--perhaps even testing US$700/oz this year--while base metals price corrections should continue for awhile.

In a recent analysis commodity analysts Tobias Merath and Eliance Tanner said gold recovery is "warranted by sound fundamentals" including new investment in gold ETFs and encouraging signs in the physical market.

Noting that the correlation between gold and silver has increased to a factor of more than 0.8 in recent months, Merath and Tanner suggested that "silver prices should also reap benefits from the upbeat outlook for gold." Credit Suisse recommended that investors who "believe that the return potential of a pure gold investment is too low should consider taking positions in a combination of gold and silver."

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