Goldcorp, Kinross and Barrick To Gain From Gold Strength

It's been a while since my last posting – but I’m not gone. The Inspector is in this for the long run.

After a six-week run-up, gold has pulled back a bit. However, long-term the future looks good. As the US dollar climbed for a second day against the euro, gold prices dropped. The six-week rise of gold really was on the back of a weakened US dollar in the first place.

This morning (October 3), RBC Dominion Securities bumped up its gold price forecasts for 2008 and 2009 and added a forecast for 2010.

RBC Dominion Securities gold price forecasts:

Gold (US$/oz)

Estimate for 2007 = $670

Estimate for 2008 = $730

Estimate for 2009 = $760

Estimate for 2010 = $790

RBC Dominion Securities also bumped up their price target for three major gold stocks, and increased the rating for one:

Goldcorp (G) - US$30.24 - Price Target Increased

Outperform, Average Risk, Price Target: US$38.00 (was US$30.00)

Kinross Gold (K) - US$14.10 - Upgrading to Outperform

Outperform, Average Risk, Price Target: US$21.00 (was US$15.00)

Barrick Gold (ABX) - US$39.25 - Increased Price Target

Sector Perform, Average Risk, Price Target: US$44.00 (was US$32.00)

And now for a speculative stock, courtesy of RBC. Anatolia Minerals, which RBC rates top pick with a price target of $9.00.

Check out Anatolia on Google Finance

RBC adjusted its price target to reflect the approaching construction phase. ANO shares are in a holding pattern as the company awaits the issuance of environmental permits that would allow construction of the Copler gold mine in Turkey to commence. Investors are likely also awaiting the outcome of legal proceedings in Turkey related to environmental permits for Eldorado Gold's Kisladag mine.

DISCLOSURE: I own shares in Goldcorp and Anatolia. I do not own shares in Barrick or Kinross