Gold May Rise for 4th Week on Demand for Hedge From Inflation

By Claudia Carpenter

July 7 (Bloomberg) -- Gold may rise for a fourth consecutive week, the longest advance since January, on speculation rising commodity prices will accelerate demand for the precious metal as a hedge against inflation.

Twenty-six of 42 traders, investors and analysts surveyed from Tokyo to Seattle on July 2 to July 4 advised buying gold, which rose 0.5 percent last week to $935.50 an ounce in New York. Eleven said sell and five were neutral.

Rising energy, food and other commodity prices are pushing up inflation around the world. In India, the world's biggest gold buyer, inflation in June was the highest in 13 years. Gold futures have climbed 12 percent this year.

A majority of analysts surveyed on June 26 and June 27 anticipated gold's gain last week. The survey has forecast prices accurately in 133 of 217 weeks, or 61 percent of the time.

This week's survey results: Bullish: 26 Bearish: 11 Neutral: 5

To contact the reporter on this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net