Citigroup Boosts 2008-10 Gold Forecasts to $900 - $1,000/oz.
Source: Mineweb.com (2/6/08)
...In their analysis John H. Hill and Graham Wark said, "We believe gold has entered a new investment-driven phase, amid a much more hospitable macro environment.
Citigroup metals analysts John H. Hill and Graham Wark said they expected a test of the $1,000/oz...
Despite the strong gold price, the analysts asserted that "from the equity perspective, gold has arguably come too fast, too fast. We do not believe that the equities discount anything close to current gold prices, or the futures curve."
In their analysis Hill and Wark said, "We believe gold has entered a new investment-driven phase, amid a much more hospitable macro environment. While gold prices have been rising since 2002, this was largely due to the pull from pro-cyclical basic materials and oil in a benign of unbalanced macro environment. Now, with discourse dominated by credit crisis, derivatives dislocations, currency debasement, inflation, and self-reinforcing financial negatives threatening U.S. recession and synchronous global slowdown, gold is entering friendly territory."