Go to the Globe and Mail homepage

Jump to main navigationJump to main content


Globe Investor

Inside the Market

Up-to-the-minute insights
on developing market news

Entry archive:

Gold forecasts polished Add to ...

Calling Northgate Minerals Corp. "oversold" after British Columbia put the kibosh on the Kemess North mine development last month, Canaccord Adams upgraded the stock to "buy" from "hold," with a price target of $3.75 (U.S.). The brokerage also downgraded three stocks to "hold" from "buy," including Barrick Gold Corp. on valuation and expectations of high costs in the third quarter this year; Centerra Gold Inc. on valuation and a reduced risk-reward outlook; and Pan American Silver Corp. on a reduced valuation because of higher costs. Analyst Steven Butler also polished his per-ounce gold price forecasts, with 2007 raised to $689 from $679; 2008, to $800 from $725; and the long-term price going up to $600 from $500. He reiterated his "favourable" view of gold prices, citing the tenuous outlook for the U.S. dollar, gold's safe haven role and certain fundamentals such as strong investment demand and diminished/contained central bank selling of bullion. But he cautioned that the current strong seasonal component of fundamental demand could result in a temporary pullback in prices later this year.

Report Typo/Error

Next story