By Nicholas Larkin - Jun 24, 2010
Gold may gain as investors buy the metal to protect their wealth on concern the global economic recovery will falter, a survey found.
Ten of 19 traders, investors and analysts surveyed by Bloomberg, or 53 percent, said bullion would rise next week. Four forecast lower prices and five were neutral. Gold for delivery in August was down 1.1 percent for this week at $1,244 an ounce at 10:45 a.m. in New York yesterday. It reached a record $1,266.50 on June 21.
Gold is up 13 percent this year as investors seek to protect their wealth against the crisis in Greece and other European nations struggling to repay debt. Credit-default swaps on Greece rose to an all-time high of 970 basis points yesterday, according to CMA DataVision, increasing the cost of protection against default. Purchases of U.S. new homes fell in May to the lowest level on record, a June 23 report showed.
“Investment demand has not shown any signs of easing, driven by anxiety over troubles in the euro zone and persistently weak macro data,” said Andrey Kryuchenkov, an analyst at VTB Capital in London.
The red bars on the attached chart are derived by subtracting bearish forecasts from bullish estimates, with readings below zero signaling that most respondents expect a decline. The green line shows the gold price. The data shown are as of June 18.
The weekly gold survey that started six years ago has forecast prices accurately in 182 of 316 weeks, or 58 percent of the time.
This week’s survey results: Bullish: 10 Bearish: 4 Neutral: 5
To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net.
From Bloomberg Published on Jun 24, 2010
