By Glenys Sim
May 15 (Bloomberg) -- Gold headed for a second weekly gain as the dollar extended its decline and global stocks were poised for their first weekly slump in ten, boosting demand for haven investments.
Bullion, little changed today, is up 1.1 percent this week as the Dollar Index, which tracks the greenback against six major currencies, headed for a fourth weekly loss. The MSCI World Index rose 0.4 percent today, taking its loss for the week to 3 percent.
“Investor sentiment remains positive,” Barclays Capital analysts led by Gayle Berry said in an e-mailed report today. “Beyond short-term corrections, a weaker dollar and expectations for a build in inflation are likely to spur investors to increase their exposure to gold.”
Gold for immediate delivery was at $926.92 an ounce at 2:18 p.m. in Singapore. The metal climbed to $930.90 an ounce May 13, the highest since April 1. Silver was unchanged at $14.06 an ounce, a gain of 0.4 percent this week.
The dollar traded at $1.3595 to the euro, from $1.3639 yesterday. A report later today may show the European Union’s economy shrank 2 percent in the first quarter, the fastest contraction in at least 13 years, according to a Bloomberg News survey of economists.
Gold holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, stood unchanged at 1,105.62 metric tons yesterday. They rose the day before for the first time since April 9, according to the company’s Web site.
“In the near term, a lack of fresh investor interest is likely to stem upward momentum” and gold will likely average $925 an ounce for the second quarter, Berry said.
To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net
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