Aug. 19 (Bloomberg) -- Gold may extend gains from a record as concern about debt crises and slowing growth boosts demand for the metal as an alternative asset, a survey found.
Sixteen of 30 traders, investors and analysts surveyed by Bloomberg, or 53 percent, said bullion will rise next week. Five predicted a drop and nine were neutral. Gold for December delivery was up 4.7 percent for this week at $1,824.50 an ounce by 11 a.m. yesterday on the Comex in New York after reaching an all-time high of $1,829.70 earlier in the day.
Bullion jumped to a record yesterday as equities plunged worldwide and Treasuries rallied, driving yields to record lows. Morgan Stanley cut its forecast for global growth this year amid concern the economy is slowing. Gold holdings in exchange-traded products last week reached 2,216.8 metric tons, the most ever, data compiled by Bloomberg show.
“The world is a particularly scary place at the moment economically,” said Ross Norman, chief executive officer of Sharps Pixley Ltd., a London-based bullion brokerage. “We’re seeing very good physical buying lately. It’s a way of preserving wealth.”
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 Aug. 12.
A gold allocation at 10 percent of assets “will protect people no matter what scenario we get in the coming years, whether it’s deflation, stagflation or a more virulent form of inflation,” Mark O’Byrne, executive director of brokerage GoldCore Ltd., said yesterday in an interview on Bloomberg Television’s “Countdown.”
The weekly gold survey, which started seven years ago, has forecast prices accurately in 217 of 376 weeks, or 58 percent of the time.
This week’s survey results: Bullish: 16 Bearish: 5 Neutral: 9
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