RBC Boosts Majority of Gold Producers' Price Targets

Source:

RBC Capital Markets' forecast for gold jumped $50 per ounce for both 2008 and 2009, to $780 and $810, respectively.

Analysts at RBC Capital Markets expect higher capital and operating costs will continue to put pressure on miners. And while they boosted their price forecasts for both silver and gold, these gains are expected to limit, and in some cases be completely offset by higher costs...

The firm now expects silver prices will average $14 per ounce in 2008, up from an earlier estimate of $13.50. Its forecasts for 2009 and 2010 also rise $0.50 to $14.50 and $15, respectively.

RBC’s forecast for gold jumped $50 per ounce for both 2008 and 2009, to $780 and $810, respectively. Its estimate for 2010 climbs $60 to $850.

As a result of these adjustments, RBC’s average target price for Tier I gold names climbs 1%, and 4% for Tier II stocks.

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