Gold retakes $1,200, Sterne Agee sees gold at $1,400 in 2015
Oct. 06, 2014 2:45 PM ETAngloGold Ashanti plc (AU) StockGLD, IAU, SLV, NEM, GFI, KGC, AEM, IAG, CDE, GOLD, HL, PAAS, AU, RGLD, DBP, DBS, DGL, AGI, NGD, DGP, DZZ, DGZ, GORO, USV, UBG, UGL, GLL, AGQ, ZSL, SGOL, SIVR, BTG, AGOL, TBAR, BLNG-OLD, UGLDF, DGLDF, USLVF, DSLVF, OUNZ, RGRP, GLDE, GYEN, GGBP, GEUR, GLDI, SLVO, BAR-OLD, BARS, WPM, JJPBy: Carl Surran, SA News Editor - Gold prices bounce off 15-month lows to reclaim $1,200/oz. as the dollar rally pauses, helping strengthen shares of precious metals miners: AU +4.4%, GFI +3%, IAG +1.9%, BTG +3%, GG +2.2%, NGD +1.5%, KGC +1.6%, AGI +1.6%, RGLD +1%, SLW +2.1%.
- Sterne Agee analysts Michael Dudas and Satyadeep Jain foresee gold and silver prices trending higher, with gold averaging $1,400/oz. in 2015 and $1,450 in 2016 and silver averaging $19 next year and $21 in 2016, as “global demand remains firm, liquidity remains ample and the dollar appears overbought.”
- With investor sentiment still skeptical, Sterne thinks any supportive macro news flow could provide fuel for a rally; the firm rate Newmont Mining (NEM +1.5%), Agnico-Eagle Mines (AEM +2.4%), Coeur Mining (CDE +1.3%) and Gold Resource (GORO +0.2%) as Buys, with Barrick Gold (ABX +0.5%), Hecla Mining (HL +4.3%) and Pan American Silver (PAAS +1.5%) rated Neutral.
- ETFs: GLD, SLV, AGQ, IAU, USLV, SIVR, SGOL, ZSL, UGL, DGP, GLL, UGLD, DZZ, SLVO, GLDI, DSLV, DGL, DBS, DGZ, OUNZ, DGLD, AGOL, DBP, TBAR, USV, UBG, JJP-OLD, GLDE, BAR-OLD, GYEN, GEUR, RGRP, BARS, GGBP, BLNG