http://online.wsj.com/article/BT-CO-20100114-703037.html?mod=WSJ_latestheadlines
LONDON (Dow Jones)--Goldman Sachs (GS) Thursday revised its 12-month copper, nickel and zinc forecasts, citing a combination of improving economic growth in developed markets and robust emerging markets growth.
It raised its 12-month copper forecast to $7,855 a metric ton from its previous estimate of $7,755/ton. It also raised nickel to $17,195/ton from $17,140/ton and zinc to $2,570/ton from $2,565/ton.
But the bank warned that risks have shifted "more meaningfully to the downside for most of the metals post the recent rally, as substantial improvement in fundamentals will likely be required to sustain prices at current or higher price levels."
It cut its 12-month aluminum forecast to $2,140/ton from $2,305/ton.
Goldman upped its gold and silver 12-month forecasts slightly, tipping gold at $1,365 a troy ounce from $1,350/oz and silver at $23/oz from $22.50/oz.
The bank said a low real interest rate environment will continue to support gold prices, with a significant rise in interest rates not warranted at this point.
But it noted that if U.S. real interest rates don't move lower, it would expect a more limited rise in gold prices in 2010.
-By Andrea Hotter, Dow Jones Newswires; +44 (0)20 7842 9413; andrea.hotter@dowjones.com
