Worried about Gold Shares, CIBC Dropped Price Forecasts But Remain Bullish

Source:

Metals analysts Barry Copper, Cosmos Chiu and Brad Humphrey lowered their gold price forecast for this year from $725/oz to $675/oz "with expectations that the bull market for bullion will continue but in a much more subdued pace."

In their recently published report, "What is Wrong with Gold Shares?", Canada's CIBC World Markets advised that gold increases are going to be more subdued, and limited to about $50 per year.

Metals analysts Barry Copper, Cosmos Chiu and Brad Humphrey lowered their gold price forecast for this year from $725/oz to $675/oz "with expectations that the bull market for bullion will continue but in a much more subdued pace."

They also lowered their 2008 gold price forecast from $850/oz to $725/oz and suggested a 2009 forecast of $775/oz. CIBC suggested that difference between their gold price estimates and consensus are relatively close. "We forecast year-over-year gold prices increases of $50/oz while consensus median increases are about $35/oz."

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