S&P Equity: Striking Gold in Mutual Funds

Mutual funds for investors seeking exposure to gold

NEW YORK, Oct. 21 /PRNewswire/ -- With the price of gold over $1,000 per
ounce, mainly driven by inflation worries, a declining dollar, and market
volatility, investors may want to turn to mutual funds to get in on what could
be a golden opportunity.

S&P Equity Analyst Leo Larkin says he has a positive fundamental outlook for
gold -- and gold mining stocks -- for the next 12 months. "Based on our
expectation for increased production and a further rise in the gold price for
2010, we look for another increase in sales and earnings for this group."

Some gold watchers believe that gold will go to $2,000 or even $5,000 per
ounce if the dollar continues to weaken, and worldwide stimulus spending
earlier this year and economic recovery spur inflation. However, many other
analysts are looking at a more modest rise, at least in the foreseeable
future.

"Gold prices have broken nicely above key chart resistance just above $1,000
per ounce," says S&P's Chief Technical Strategist Mark Arbeter. "However, we
would still like to see a strong close above the $1,050 per ounce level, or a
price retest of $1,000 per ounce followed by a move to new all-time highs,
before chasing at this point. If prices break above $1,050 per ounce, we
believe it would set the market up for a strong intermediate-term rally that
could take prices up into the $1,200 to $1,500 per ounce range."

For investors who want to buy into a basket of gold companies, Standard &
Poor's new mutual fund ranking product, MarketScope Advisor® (MSA), gives a
top five-star ranking to Franklin Gold & Precious Metals (FKRCX). MSA uses
bottom-up research about a fund's holdings, as well as performance, risk, and
cost analysis. Investors looking to jump into gold may also want to consider
S&P four-star ranked mutual funds: First Eagle Gold (FEGIX), Tocqueville Gold
(TGLDX), Oppenheimer Gold & Special Minerals (OPGSX), and Van Eck
International Investors Gold (INIVX).

This material is not intended as an offer or solicitation for the purchase or
sale of any security or other financial instrument. Securities, financial
instruments or strategies mentioned herein may not be suitable for all
investors.

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SOURCE Standard & Poor's

Marc Eiger, Communications, for Standard & Poor's +1-212-438-1280,
marc_eiger@standardandpoors.com