Photo: AP Photo/Adam Nadel
Investors often turn to gold during times of economic uncertainty. But lately, that same fear has strengthened the U.S. dollar and seems to have brought gold prices down to $1,672.70 per ounce level, from its $1,900 per ounce highs.For now though, gold looks set to keep rising. Despite improving sentiment in Europe, JP Morgan analyst John Bridges is positive on gold as “an insurance policy” because he suspects that changing the positive sentiment to actual reform would still be a difficult task.
JP Morgan London-based metals team just raised its Q4 gold price target to $2,150 per ounce from $1,800 per ounce.
Bridges argues rising gold will benefit miners, which he thinks are priced for $1,200 gold. He has overweight ratings on:
- Barrick Gold (ABX) – $53 price target
- Goldcorp Inc. (GG) – $63 price target
- Jaguar Mining (JAG) – $7 price target
- Kinross Gold (KGC) – $23 price target
- Newmont Mining (NEM) – $21 price target