Gold May Rise, Extending Three-Day Rally
Source: Bloomberg (2/2/07)
Gold may rise in London, extending three consecutive days of gains, on speculation a U.S. jobs report will indicate slower economic growth, buoying demand for the precious metal as an alternative to the dollar.
U.S. employers probably added 150,000 jobs to payrolls last month, the slowest in three months, according to the median estimate of 82 economists surveyed by Bloomberg News. Gold, used in jewelry and investment products, has gained 1.7 percent this week as the dollar fell 0.9 percent against the euro, heading for the biggest weekly decline since early December.
...Gold has climbed about 10 percent since early January as higher commodity prices increased the appeal of the metal as a hedge against inflation. Demand from jewelers, the biggest users, slumped 25 percent in the second quarter last year when prices surged, according to the producer-funded World Gold Council.