As a result of their bullish outlooks, CIBC has raised its gold price forecasts for 2010 and 2011 from $1,100 and $1,200 per ounce to $1,200 and $1,400 per ounce, respectively. It has also increased its silver price forecasts for 2010 and 2011 from $16 and $18 per ounce to $18 and $20 per ounce, respectively. Furthermore, CIBC has raised its 12-18 month price target on numerous gold mining stocks, including Agnico-Eagle Mines (AEM), from $66 to $75 per share; Barrick Gold (ABX), from $50 to $56 per share; Newmont Mining (NEM), from $58 to $70 per share; and Yamana Gold (AUY), from $14.50 to $16 per share.

Notwithstanding the current correction in the gold price, the favorable fundamental backdrop has not changed for gold and gold mining stocks. The recent reversal in the gold sector has served its purpose of shaking out market participants who arrived late as sentiment became ebullient. Gold bulls are closely watching to see if the gold price can stabilize near the $1,100 per ounce level, consolidate its 25.8% year-to-date gain, and then challenge and exceed its early December record highs

http://www.goldalert.com/stories/Gold-Price-Rallies-Back-CIBC-Forecasts-1400-Gold-