(Bloomberg) -- Gold may advance from “summer doldrums” in the Northern Hemisphere as investors seek an alternative to a weakening dollar, a survey showed. Eleven of 25 traders, investors and analysts surveyed by Bloomberg News, or 44 percent, said bullion would rise next week. Nine forecast lower prices and five were neutral. Gold for delivery in December fell 0.7 percent this week to $947.70 an ounce by 12:01 p.m. yesterday in New York.
“The ‘green shoots’ sentiment will continue to be the main driver in all markets, boosting risk appetite which softens the dollar,” Jim Pogoda, an investor in Summit, New Jersey, and a former precious-metals trader for Mitsubishi International Corp., said in an e-mail. “When the focus has been on signs of stability and economic optimism, gold has gained along with other industrial commodities.”
Reports yesterday showed the U.S. economy contracted less than economists forecast for the second quarter, while fewer Americans filed claims for jobless benefits last week, adding to signs that the economy is pulling out of the worst recession since the 1930s. The U.S. Dollar Index, a six-currency gauge of the greenback’s value, has fallen 3.3 percent this year as gold futures have climbed 7 percent. “It seems like the summer doldrums the past week,” Pogoda said, referring to gold’s trading range this week, which is “mirroring the relative calm in equities and the dollar.”
The weekly gold survey has forecast prices accurately in 159 of 276 weeks, or 58 percent of the time. This week’s survey results: Bullish: 11 Bearish: 9 Neutral: 5
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