By Nicholas Larkin
Nov. 20 (Bloomberg) -- Gold may advance as investors seek to hedge against a weakening dollar and possible inflation, a survey showed.
Nineteen of 26 traders, investors and analysts surveyed by Bloomberg, or 73 percent, said bullion would rise next week. Five forecast lower prices and two were neutral. The metal for delivery in December was up 1.8 percent this week at $1,137.30 an ounce at noon yesterday in New York.
Bullion futures reached a record $1,153.40 an ounce on Nov. 18 and are heading for a ninth annual gain as countries have cut interest rates to near zero and spent trillions to pull the global economy out of the worst recession since World War II. The U.S. Dollar Index slipped to a 15-month low on Nov. 16. Gold usually moves inversely to the greenback.
“Concerns about the long-term outlook for the value of fiat currencies and the threat of inflation are leading many investors and savers” to gold as a store of value, GoldCore Ltd., a brokerage in Dublin, said yesterday in a note.
Gold has gained 29 percent this year as the dollar index, a six-currency gauge of the greenback’s value, has dropped 7.3 percent.
The weekly gold survey has forecast prices accurately in 166 of 288 weeks, or 58 percent of the time.
This week’s survey results: Bullish: 19 Bearish: 5 Neutral: 2
To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net
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