Gold May Rise for Second Straight Week as Investors Seek Haven

By Pham-Duy Nguyen

Oct. 13 (Bloomberg) -- Gold may rise for a second straight week on speculation that government intervention will fail to ease the credit crisis, boosting the appeal of the precious metal as a haven from market turmoil.

Twenty-five of 38 traders, investors and analysts surveyed from Mumbai to Chicago on Oct. 9 and Oct. 10 advised buying gold, which rose 3.1 percent last week to $859 an ounce in New York. Five said to sell, and eight were neutral.

Investment in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, reached a record 765.7 metric tons on Oct. 9 as coordinated interest-rate cuts by central banks failed to unclog credit markets.


Most analysts surveyed on Oct. 2 and Oct. 3 anticipated gold's gains last week. The survey has forecast prices accurately in 139 of 232 weeks, or 60 percent of the time.

Last week's survey results: Bullish: 25 Bearish: 5 Neutral: 8

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