Citigroup Forecasts 'Dim' 4Q Mining/Metals Earnings

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Analysts John H. Hill, Graham Wark and Paul Cheng declared that they see "precious metals as well-positioned given deteriorating macro conditions and concerted reflationary policies by central banks worldwide. We would expect strong safe haven demand in the event of a U.S. recession, and a test of $1,000/oz at some point."

Citigroup analysts Sunday declared that fourth-quarter metals and mining earnings outlook is "dim, given that exchange-traded mining/metals have fallen during 4Q, while downstream fabricated orders in aluminum and steel have dried up."

Nevertheless, analysts John H. Hill, Graham Wark and Paul Cheng also suggested that "deepening recession and earnings jitters increases our conviction in gold, which seems well positioned for early 08 by virtue of investment demand, competitive currency devaluations, and the reinflation trade amply on display in oil."...

The analysts declared that they see "precious metals as well-positioned given deteriorating macro conditions and concerted reflationary policies by central banks worldwide. We would expect strong safe haven demand in the event of a U.S. recession, and a test of $1,000/oz at some point."

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