CIBC Boosted Gold Price Forecasts Until 2022
Gold | 2020-04-27 18:52:25
The research report by the Canadian bank noted that the quantitative easing environment is likely to support gold’s positive outlook in the near-term.
By Paul Ploumis
SEATTLE (Scrap Monster): CIBC Equity Research published its latest report, in which they have raised gold price forecast for the period from 2020 to 2022 as compared with its earlier estimates.
According to CIBC, the gold price forecast for 2020 has been raised from the previous estimate of $1,600 per Oz to $1,725 per Oz. The forecast for 2021 has been increased to $1,800 per Oz from earlier $1,600 per Oz. Also, the bank has boosted the 2022 forecast from $1,500 per Oz to $1,600 per Oz. On the contrary, the long-term forecast for 2023 has been left unchanged at $1,400 per Oz.
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The research report by the Canadian bank noted that the quantitative easing environment is likely to support gold’s positive outlook in the near-term. Interest rates will likely remain under pressure for a few years. The growing concerns on currency devaluation will also lend support to global gold prices.
It warned investors that first quarter earnings of mining companies are likely to remain subdued, due to reduced operations and mine shutdowns on account of COVID-19 spread. However, investors are required to focus on free cash flow numbers and balance sheet health, which continues to look strong for many mining companies.
The CIBC report shortlisted Agnico Eagle, Alamos Gold, B2Gold, Barrick Gold, Franco-Nevada, Kirkland Lake Gold, Newmont, Osisko Mining, Pan American Silver, SSR Mining, and Wheaton Precious Metals as their top picks in the mining sector.
