BMO: Gold Notable Bright Spot on the Landscape

Source:

BMO Capital Markets said gold will "outperform its commodity peers as investors seek refuge from risks associated with the U.S. dollar, shaky banks and extremely volatile equity markets."

BMO Capital Markets said gold will "outperform its commodity peers as investors seek refuge from risks associated with the U.S. dollar, shaky banks and extremely volatile equity markets."

In a recent update, BMO mining and metals analysts also predicted that base metals and bulks will remain under considerable selling pressure in the months leading into 2009, "but a sustained commodity bust is not foreseen."

"This seems to be a cyclical downstream amid a secular uptrend for commodities," they said.

BMO called gold "the notable bright spot on the landscape," standing pat on the original forecast of a $925/oz gold price forecast for 2009 and $850/oz for 2010. "Demand-supportive trends continue to be visible in China (fixed asset investment is trending at over 25% year over year and retail sales are up 23% year over year, albeit weakened by a deepening G7 slowdown. Producers are cutting planned/current production in response to lower prices and capital constraints."...

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