Gold Prices May Rebound on Demand for Alternative to Dollar

By Pham-Duy Nguyen

Sept. 15 (Bloomberg) -- Gold may rebound on speculation that the dollar's rally against the euro will stall, boosting demand for the precious metal as an alternative investment.

Fifteen of 28 traders, investors and analysts surveyed from Mumbai to Chicago on Sept. 11 and Sept. 12 advised buying gold, which fell 4.8 percent last week to $764.50 an ounce in New York. Nine said to sell, and four were neutral.

Gold generally moves in the opposite direction of the U.S. currency. The metal reached a record $1,033.90 in March as the dollar weakened to the lowest ever against the euro in July.

Gold's loss last week surprised most analysts surveyed Sept. 4 and Sept. 5. The survey has forecast prices accurately in 136 of 228 weeks, or 60 percent of the time.

This week's survey results: Bullish: 15 Bearish: 9 Neutral: 4

To contact the reporter on this story: Pham-Duy Nguyen in Seattle at pnguyen@bloomberg.net.