Precious metals eased lower as a bout of profit taking replaced the europhoria seen last Friday with the new round of US monetary easing.
Spot gold fell US$10.9 to US$1759.7, silver eased back US$0.17 to US$34.2 and platinum futures dropped US$14.5 to US$1,658.1.
Analysts are still forecasting this will only be a temporary pause and today broker Westhouse revised up its forecast of gold prices going forward.
Previous estimates of $1,600/oz for 2012, $1,500/oz for 2013 and $1,400 long term have been replaced by $1,675/oz for 2012, $1,750/oz for 2013, $1,675/oz for 2014 and $1,575/oz for 2015.
Long-term, the broker says it is taking a $1,300/oz level inflated by 3% from 2012.
This price forecast change has implication for cash costs for the gold miners and Westhouse also published revised target prices for companies in its universe, most of which were bumped up higher.
Its favourites remain Cluff Gold (LON:CLF) where the target price rises to 124p from 112p and Shanta Gold, where the new target is 69p from 67p.
Cluff Gold has the potential for further positive newsflow at all three of its projects, notably a maiden resource at Yaoure, and the 80% rise in the share price since the July low is not the end of the story, believes the broker.
Shanta Gold's first gold pour at New Luika earlier this month, meanwhile, was a key step for the company after setbacks caused it to miss its first two production deadlines.
Shanta has guided towards production of 13,000-17,500oz Au in Q4 2012. This is in-line with expectations as the company pre-mined a large quantity of ore in preparation for production to get underway. Westhouse rates the shares a 'strong buy'.
