By Nicholas Larkin - Feb 25, 2011 8:01 AM GMT+0800 Gold, trading near a record high, may climb as violence in Libya and concern that inflation will accelerate boost demand for an alternative asset, a survey found. Sixteen of 20 traders, investors and analysts surveyed by Bloomberg, or 80 percent, said the metal will rise next week. Four predicted lower prices. Gold for April delivery was up 1.8 percent for this week at $1,414 an ounce at 11 a.m. yesterday on the Comex in New York. Futures reached a record $1,432.50 in December.
“Unrest in Libya and the potential for it spreading to other key Arab areas is fueling the advance,” said Jim Pogoda, an investor in Summit, New Jersey, and a former precious-metals trader for Mitsubishi International Corp.
Libya is the latest country in the region to be rocked by protests that toppled presidents in Tunisia and Egypt this year. Opponents of Libyan leader Muammar Qaddafi consolidated control over the oil-rich east while he clamped down on Tripoli, using tanks to block highways and security forces to attack residents, witnesses said. Oil surged to $100 a barrel in New York for the first time in two years.
“The situation in Libya continues to create jitters over oil supplies, which in turn could stoke inflation,” James Moore, an analyst at TheBullionDesk.com in London, said in an e- mail. Some investors buy gold as a hedge against rising prices. 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 Feb. 18. The weekly gold survey that started more than six years ago has forecast prices accurately in 200 of 351 weeks, or 57 percent of the time. This week’s survey results: Bullish: 16 Bearish: 4 Neutral: 0
To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net.
Source: http://www.bloomberg.com
Gold can really be a good fall back in times like that. Cash for platinum, gold and silver can be a very good business.
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