RBC Sees Gold Going Higher Next Year

Source:

Head of global mining research Stephen Walker said: “While we recently lowered our expectations for gold prices over the next few years, as the global economy slows, we remain very positive on the outlook for gold and believe it will rally through $900/ounce in the first half of 2009.

RBC Capital Markets predicted gold should rally through $900/ounce in the first half of 2009 at the firm’s annual gold conference being held in London on Thursday.

Head of global mining research Stephen Walker said: “While we recently lowered our expectations for gold prices over the next few years, as the global economy slows, we remain very positive on the outlook for gold.

“We believe that the gold market should begin to price in a recovery in the global economy and, with that recovery, an increase in inflation expectations, particularly given the enormous amount of monetary and fiscal stimulus being applied by central banks.”

RBC equity analyst Leon Esterhuizen said: “The current financial crisis has delivered the perfect conditions for gold to rise over the next year or two.”

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