Here are the Macquarie Research Commodities (MRC) reviews about the current market for Gold and insights about their Gold price forecast.

China – Gold Fever

If you are bullish on the long term China story, you should also be bullish on Gold. Like Oil, Gold has recently surged in price driven by demand from China and other major Developing Countries. In today’s note, Macquarie Research Commodities (MRC) reviews the current market for Gold and provides an insight into their Gold price forecast of $1,100/oz in the medium term.

The overarching themes that MRC highlight to support a continued appreciation in the gold price include:
• Sustained growth and demand in China and the developing world;
• The continued decoupling of the relationship between the value of gold value and the U.S. economy; and
• Global inflation remaining a concern with gold acting as a hedge against inflation.

Macquarie Research Equities (MRE) currently has the following recommendation on gold producers:
• Lihir Gold Limited (LGL) – Outperform $4.70 price target
• Newcrest Mining Limited – Outperform $40.00 price target