Gold May Rise for Fifth Week on Dollar Outlook, Survey Shows

By Claudia Carpenter

Dec. 1 (Bloomberg) -- Gold may rise for a fifth straight week on speculation the dollar will extend a decline, increasing demand for the precious metal as an alternative investment.

Twenty-two of 35 traders, investors and analysts surveyed from Melbourne to Dallas from Nov. 26 to Nov. 28 advised buying gold, which climbed 3.4 percent last week to $819 an ounce in New York. Eight said to sell, and five were neutral.

The dollar dropped 1.9 percent last week against a weighted basket of six major currencies. Gold rose to a record in March as the dollar headed to the lowest ever against the euro.

Gold’s gain last week surprised the majority of analysts surveyed on Nov. 20 and Nov. 21. The survey has forecast prices accurately in 142 of 239 weeks, or 59 percent of the time.

Last week’s survey results: Bullish: 22 Bearish: 8 Neutral: 5

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