Gold may advance as concern about Europe’s debt crisis and military tensions in the Korean peninsula boost demand for a protection of wealth, a survey found.
Eleven of 16 traders, investors and analysts surveyed by Bloomberg, or 69 percent, said the metal will rise next week. Four predicted lower prices and one was neutral. Gold futures for February delivery were up 2.1 percent for this week at $1,393 an ounce at 11 a.m. yesterday on the Comex in New York. Futures reached a record $1,424.30 on Nov. 9.
European Central Bank President Jean-Claude Trichet said yesterday the ECB will delay withdrawing emergency liquidity measures and keep buying bonds as the European debt crisis creates “acute” tensions in financial markets. Gold gained the past two weeks on concern the region’s debt woes will spread and as North and South Korea exchanged artillery fire.
“Growing anxiety among investors and the recent uptick in geopolitical tensions continue to draw investors toward the traditional safe-haven assets” such as gold, said James Moore, an analyst at TheBullionDesk.com in London.
The attached chart tracks the results of the Bloomberg survey, with the red bars derived by subtracting bearish forecasts from bullish estimates. Readings below zero signal that most respondents expect a decline. The green line shows the gold price. The data are as of Nov. 26.
The weekly gold survey that started six years ago has forecast prices accurately in 194 of 339 weeks, or 57 percent of the time.
This week’s survey results: Bullish: 11 Bearish: 4 Neutral: 1