Gold may advance as investors seek to hedge against a weakening dollar and possible inflation, a survey showed. Nineteen of 26 traders, investors and analysts surveyed by Bloomberg, or 73 per cent, said bullion would rise in the week starting November 23. Five forecast lower prices and two were neutral.
Gold futures for December delivery rose $4.90, or 0.4 per cent, to $1,146.80 on the Comex division of the New York Mercantile Exchange. Earlier, the price dropped as much as 0.8 per cent. The metal gained 3.2 per cent in the previous five sessions. In November, the price has climbed more than $100.
Bullion futures are heading for a ninth annual gain as countries have cut interest rates to near zero and spent trillions to pull the global economy out of the worst recession since World War II. "Concerns about the long-term outlook for the value of fiat currencies and the threat of inflation are leading many investors and savers" to gold as a store of value, GoldCore, a brokerage in Dublin, said in a note.
Gold has gained 29 per cent this year as the dollar index, a six-currency gauge of the greenback's value, has dropped 7.3 per cent. The weekly gold survey has forecast prices accurately in 166 of 288 weeks, or 58 per cent of the time. This week's survey results: Bullish: 19 Bearish: 5 Neutral: 2
