Precious and Base Metals, Oil, in New Orbits
Source: Mineweb.com (2/27/08)
RBC CM analysts are maintaining a bullish longer-term outlook for gold: "One aspect we believe is not priced into the commodity, nor the gold equities, is increased inflation expectations".
RBC CM says a similar correction could see the gold price retrace back to the mid-$800 an ounce level during the seasonally weaker-demand Northern Hemisphere summer months. On platinum, the analysts say that much of the current "super price environment" is a direct result of mining companies falling well short of previous production promises, then from January, compounded by the South African electricity supply constraint. The analysts believe that jewellery demand for platinum will decline dramatically, allowing the auto-catalyst need to be filled, but causing the platinum price to be maintained at levels of $2,000 an ounce for the next two to three years....
RBC CM analysts are maintaining a bullish longer-term outlook for gold: "One aspect we believe is not priced into the commodity, nor the gold equities, is increased inflation expectations". A scenario of rising inflation in Asia and the Middle East, coupled with continued US dollar weakness in a US Federal Reserve bank rate cutting cycle, leads the analysts to believe in support for $1,000 an ounce gold prices "and maybe significantly higher later this year and into 2009".