Barrick, Goldcorp still bullish on gold

Barrick Gold Corp. and Goldcorp Inc. are still bullish on long-term gold prices despite the recent correction in the precious metal, according to a new note from Credit Suisse

In a wrap-up of last week's Denver Gold Forum, analyst Anita Soni told clients that Barrick believes the re-emergence of global inflation, low real interest rates and renewed credit concerns will continue to support higher gold prices.

Barrick added, she said, that underpinning these issues, is an environment of supportive supply demand fundamentals including declining mine supply and emerging market demand for gold.

Goldcorp meanwhile argued that investors are only half way through a longterm bull market for gold, despite the surprise correction that has seen gold fall more than 10% this summer, the analyst wrote.

Ms. Soni also said that several producers expect M&A activity to pick up now that the recent pullback in equity prices has provided some attractive opportunities, especially for those companies with large cash balances.