By Nicholas Larkin
July 24 (Bloomberg) -- Gold may advance as investors seek an alternative to a weakening dollar, a survey showed.
Fourteen of 24 traders, investors and analysts surveyed by Bloomberg News, or 58 percent, said bullion would rise next week. Six forecast lower prices and four were neutral. Gold futures for delivery in August were up 2 percent this week, to $956.50 an ounce, by noon yesterday in New York.
The U.S. Dollar Index, a six-currency gauge of the greenback’s value, touched a seven-week low on July 22 and is down 1.8 percent this month. Gold, which tends to rise when the dollar weakens, climbed to the highest in almost six weeks yesterday and has added 3 percent this month.
“The U.S. dollar is under pressure and gold seems to be tightly correlated to the U.S. dollar weakness,” MKS Finance SA Senior Vice President Frederic Panizzutti wrote in an e-mail. “We don’t see any substantial buying interest, but rather currency-related buying.”
The weekly gold survey has forecast prices accurately in 157 of 271 weeks, or 58 percent of the time.
This week’s survey results: Bullish: 14 Bearish: 6 Neutral: 4
To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net
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