Merrill Lynch Substantially Raises Gold Price Forecast, Ups Silver Too

Source:

Research analysts Michael Jalonen and Jeffrey Schok said they expect gold to average $925/oz this year and $1,000/oz in 2009 (up from $750/oz and $800/oz respectively)..."Due to higher forecasts for the 2008-2012 period, our 10-year average gold price has jumped from $655 to $800/oz," they said.

Citing broadening investor demand, a weak U.S. dollar, record oil prices and ongoing geopolitical tension, Merrill Lynch Monday substantially raised their 2008-2012 gold forecasts, while also predicting increased silver prices.

Research analysts Michael Jalonen and Jeffrey Schok said they expect gold to average $925/oz this year and $1,000/oz in 2009 (up from $750/oz and $800/oz respectively). They raised the long-term gold price forecast from $600/oz to $650/oz, beginning in 2013. "Due to higher forecasts for the 2008-2012 period, our 10-year average gold price has jumped from $655 to $800/oz," they said.

...ML also made significant increases in EPS and CFPS forecasts for all North American gold producers under the broker's coverage...

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