RBC Capital Markets Expects Strong 2006 Finish for Gold and Remains Positive on Long-term View

RBC Capital Markets brings together top gold companies for world-leading conference

 

LONDON, November 8,  2006 - RBC Capital Markets, the corporate and investment banking arm of Royal Bank of Canada (RY on TSX and NYSE), has issued a research report that focuses on the long-term bull cycle for gold that is expected to continue to the end of this decade.

 

Anchored by fundamental and macro-economic factors - including a positive gold supply-demand balance, good technical outlook and a weak US dollar - the current environment for gold is well supported for the long-term. In addition, gold's growing relevance as an alternative asset continues to attract strong investor appetite, further strengthening the investment case.

 

Stephen D. Walker, Director of Global Mining Research at RBC Capital Markets commented: "RBC Capital Markets remains bullish on gold and gold equities for the long-term, and our report identifies the key factors that we believe support the asset's positive outlook. We are also very proud to host a conference that brings together the world's leading gold companies, for a forum rich with ideas and discussion about one of the most important assets in the world."

 

For the short term, the report concludes that the price correction from the highs of May 2006 has run its course; however, the report forecasts that gold could re-test the $700 level over the next 12 months, particularly in early 2007, as a result of demand from the Middle East, China and India.

 

RBC Capital Markets is hosting its annual Global Gold Mining Conference this week, on Thursday November 9 2006 at the Four Seasons Hotel in London. The conference brings together the senior management of the world's largest gold producers to speak about the opportunities and challenges that they face. Speakers include: Polyus Gold, Goldcorp Inc., and Newmont Mining Corporation.

 

In addition, this year a number of smaller gold producers with exciting growth production profiles, as well as a number of exploration companies with exciting development projects, will also be making presentations.

 

RBC Capital Markets' Global Gold Mining Conference will be webcast live on Thursday 9 November at 9:05 GMT. The webcast will be audio-only and will be available for 30 days after the conference. To access the webcast, please visit: www.wsw.com/webcast/rbc58/

 

Media Enquiries:

RBC Capital Markets, London
Louisa Fairman
Telephone:  +44 (0)20 7029 7821

 

GreenTarget, London
Anna Watson

Telephone: +44 (0)20 7680 5052
Mobile: +44 (0)780 148 1602

 

Notes to Editors

 

About RBC Financial Group
Royal Bank of Canada (RY on TSX and NYSE) uses the initials RBC as a prefix for its businesses and operating subsidiaries, which operate under the master brand name of RBC Financial Group. Royal Bank of Canada is Canada's largest bank as measured by market capitalization and assets, and is one of North America's leading diversified financial services companies. It provides personal and commercial banking, wealth management services, insurance, corporate and investment banking, and transaction processing services on a global basis. The company employs approximately 70,000 full and part-time employees who serve more than 14 million personal, business and public sector clients through offices in North America and some 30 countries around the world. For more information, please visit www.rbc.com.

 

RBC Capital Markets
RBC Capital Markets is the corporate and investment banking arm of RBC Financial Group and is active globally in debt origination, sales and trading, foreign exchange, infrastructure finance, structured products, metals and mining, and energy. Its North American equity underwriting; sales, trading and research business dominates the Canadian market and supports a significant and growing franchise globally. For more information, please visit www.rbccm.com.

 

RBC Capital Markets is a business name used by Royal Bank of Canada Europe Limited, 71 Queen Victoria Street, London EC4V 4DE (registered in England 995939), which is regulated by the FSA and a member of the London Stock Exchange.