Higher Gold and Copper Prices Should Benefit Newmont and Barrick

Citigroup has hiked its gold price forecast by roughly 20% to $900, $950 and $1000 for 2008 through 2010, saying the metal should benefit from a “hospitable macro environment.”

Analyst John Hill is also boosting his earnings per share [EPS] estimates for Barrick Gold Corp. (ABX) and Newmont Mining Corp. (NEM) based on higher expectations for both gold and copper ($3.50 per pound in 2009).

He has a “buy” recommendation on Newmont and a “top pick” for Barrick.