UNITED STATES June 15 2017 10:20 AM
NEW YORK (Scrap Register): New York based Citibank has remained neutral on North American gold miners and analysts given the bank’s view that the price of the precious metal will peak in the second quarter.
Citi’s lone buy-rated stock is Pretium Resources (NYSE, TSX: PVG), which is working to move the Brucejack mine into commercial production.
“Citi’s house view is for a mild correction of spot gold prices following the anticipated June Fed rate hike,” the bank added.
Citi forecasts gold will average $1,220 an ounce in 2017 and around $1,245 next year.
Citi economists currently expect two more 2017 rate hikes in June and September, with balance-sheet tapering in December. Macro uncertainty could drive significant gold price volatility, the bank noted.