The worst part of the three-year decline in gold prices may be over. Goldman Sachs analyst Andrew Quail has raised the firm’s price target for gold and issued two stock upgrades and two downgrades among gold miners.

Goldman has upped its 2017 gold price forecast from $1,000/oz to $1,150/oz. Quail noted a revised interest rate forecast is the driver of the firms more positive outlook for gold.

When it comes to gold miners, Quail says that investors must still remain selective.

“Ultimately, we still prefer miners with volume growth, low costs, strong balance sheets and low geopolitical risk exposure that generate superior FCF and EBITDA growth,” he explained.

Quail sees Newmont Mining Corp NEM 2.59% as the gem of the group and believes organic growth from Merian is less than six months away. Goldman has upgraded Newmont from Neutral to Buy and raised its price target from $23.30 to $36.

In addition to the Newmont upgrade, Goldman has also upgraded Kinross Gold Corporation (USA) KGC 1.77% from Sell to Neutral with a $5.30 price target.

The firm has downgraded…

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