Gold to Rise on Physical, Investment Demand
Source: Bloomberg, Nicholas Larkin (7/23/10)
"Survey finds 44% of industry vets say bullion will rise next week."
Out of 27 traders, investors and analysts surveyed by Bloomberg, 12, or 44%, said bullion will rise next week. Seven forecast lower prices and eight were neutral. Gold for delivery in August was up 0.8% for this week at $1,197.40 an ounce at 4:30 p.m. yesterday on the Comex in New York.
The metal has dropped 5.5% since climbing to a record $1,266.50 on June 21. Stress-test results on European banks may be released today as regulators determine whether banks can survive potential losses on sovereign-debt holdings. Federal Reserve Chairman Ben Bernanke said this week that the economic outlook remains "unusually uncertain."
The "bullish longer-term uptrend is still intact and prices are supported by physical buyers," said Bayram Dincer, an analyst at LGT Capital Management in Pfaeffikon, Switzerland. "Gold also serves the principal motive of long-term wealth preservation."
The weekly gold survey that started six years ago has forecast prices accurately in 183 of 320 weeks, or 57% of the time.
This week's survey results: Bullish: 12 Bearish: 7 Neutral: 8