Tuesday, May 25, 2010

Barrick Gold (NYSE:ABX) Upgraded by Deutsche Bank (NYSE:DB)

Deutsche Bank (NYSE:DB) upgraded Barrick Gold (NYSE:ABX) today from "Hold" to "Buy," saying their view on gold has changed drastically based on increasing uncertainty in relationship to currencies and macro-economic conditions.

They've increased their projections for gold futures in 2011 and 2012, adding 16 percent to their former numbers, with expectations of $1,450 an ounce in 2011, and in 2012, prices are now estimated to reach as high as $1,600, which is 60 percent over their former numbers.

This is much higher than consensus in the short-term, 25 percent above those numbers.

Analyst Jorge Beristain said, “The probability of extremes in future inflationary prospects is taking a step higher over the next 6-12 months, as investors contemplate the twin threats of deflation and inflation.”

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