Credit Suisse has a bullish outlook on gold for 2017, but that sentiment hasn't fully carried over for the precious metal's miners.

Alamos Gold Inc. (AGI) - Get Report was backsliding 2.5% to $8.20 a share in Friday afternoon trading after it was downgraded by the bank from "outperform" to "neutral."

A projected increase in costs and capital expenditures at Alamos' flagship Mulatos mine in Sonora, Mexico is the main reason for the downgrade, analyst Anita Soni wrote in a research note circulated to investors Friday.

The mine has 44.7 million tons of proven and probable reserves.

Despite the expected sluggishness for Alamos, Soni has a rosy sentiment for the safe haven commodity: the bank has a $1,338 per ounce price target on gold for 2017.

"We remain positive as real [interest] rates are still low and remain supportive," she wrote. "We believe the market is underestimating trade protectionism and 2017 supply/demand should be more supportive."

January gold Comex futures were trading at $1,118 per ounce Friday.

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