by Lawrence Williams, MineWeb.com
We have stated a number of times here that the bank analysts are effectively totally reactive in their analyses and forecasting of precious metals prices – indeed they tend to follow the herd and with gold performing rather better than they had anticipated so far this year (up 11.5% since the December 31st London fixing) some are already beginning to increase their predictions sharply, although admittedly others have stuck to their bearish forecasts so far. However how long they continue to do so if gold maintains its recovery remains to be seen.
Whether there is a real recovery in the U.S. economy in particular or not – a recovery suggesting that investors will continue to support the general equity market rather than gold (which is perhaps the view most quoted by bearish analysts like Jeff Currie at Goldman Sachs) – there are other drivers out there which should remain positive for gold and suggest that the recent gold price recovery could perhaps be sustainable
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