Scotiabank: Gold may soon test $1,300

Scotiabank economist Patricia Mohr forecast Monday that gold may test the US$1,300 during a time she referred to as a new gold rush.

Mohr noted Scotiabank's Metal & Mineral Index showed "broad-based strength in base metals, a surge in gold & silver prices and slight gains in sulphur and uranium prices more than offset somewhat softer steel-alloy prices (molybdenum and cobalt)."

Although LME copper prices have edge down from their near-term peak of US$3.15 on November 23, Mohr suggested, "copper remains exceptionally lucrative at $US3.06 per pound in late November , yielding a profit margin of 58% over average world break-even costs (including depreciation)."

Click here for more on Mohr's forecast for $1,300 gold.

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