Wednesday December 23, 1998 (08:43 am ET)
S&P Still Positive on Gold Stocks
By Leo Larkin, S&P Analyst
NEW YORK, Dec. 23 (Standard & Poor's) - S&P maintains its positive outlook on gold stocks despite weakness in both the group and the metal itself.
Gold stocks have fallen as gold dipped below $290 an ounce, while a drop in commodities/base metals is also hurting the shares and psychology. But metal itself is acting better than the stocks, with gold about unchanged on the year, and it is also behaving better than base metals.
Positive factors for 1999 include less central bank selling, more volatile financial market returns, and a renewed role for gold as a financial hedge. We reiterate (accumulate) opinions on Battle Mountain Gold (BMG), Homestake Mining (HM), Barrick Gold (ABX), Newmont Mining (NEM), and Placer Dome Inc (PDG).
23-Dec-1998 08:43:12 (01657152) Copyright 1998 Standard & Poor's Investment Advisory
personalwealth.com. |
