JP Morgan Sets Higher Long-Term View on Gold Price

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JP Morgan analyst Steve Shepherd said in a recent research report that the $675/ounce outlook is consistent with historical gold prices, the rapid rise in cash costs in the industry, rising capex costs, rapidly rising labour costs and the more complicated nature of mining, especially in South Africa

JP Morgan has increased its long-term outlook for gold from $625/ounce to $675/ounce as miners continue to battle to bring gold ounces to the market.

JP Morgan analyst Steve Shepherd said in a recent research report that the $675/ounce outlook is consistent with historical gold prices, the rapid rise in cash costs in the industry, rising capex costs, rapidly rising labour costs and the more complicated nature of mining, especially in South Africa...

"Our long-term price view is ‘bumped up' to reflect this more difficult operating environment and the shifting economics of mining gold globally."

JP Morgan said the 20% increase in the gold price since mid-August this year was the result of a number of factors.

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