BMO: Gold Notable Bright Spot on the Landscape
Source: Mineweb (10/6/08)
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."...