Jefferies Anticipates Higher Highs And Greater Lows For Gold Prices (AEM)

Jefferies said that it believes macro, micro, and technical drivers will allow gold prices to achieve higher highs and greater lows.

“As investors continue to discount a higher gold price, Agnico-Eagle Mines (NYSE: AEM) should better reflect pricing and growth,” Jefferies writes.

“Exploration drilling has been successful so far, especially at Kittila and at Meliadine. Management seems confident Agnico's current reserve base of around 18 million would increase to 21-22 million ounces when Meliadine and Kittila reserves are included by the end of 2011.”

Agnico-Eagle Mines closed Tuesday at $72.32.