(Bloomberg) -- Gold, trading within about 2 percent of a record, may advance as investors seek to hedge against a weaker dollar and possible inflation, a survey showed. Sixteen of 21 traders, investors and analysts surveyed by Bloomberg, or 76 percent, said bullion would rise next week. Three forecast lower prices, and two were neutral. Gold for delivery in December was down 0.6 percent at $1,014.50 an ounce as of 12:14 p.m. yesterday in New York.
Gold reached an 18-month high of $1,025.80 an ounce yesterday, and is set for a fifth weekly gain as the U.S. Dollar Index reached its lowest level in almost a year. U.S. consumer prices rose 0.4 percent in August, beating economists’ forecasts, while an increase in the country’s housing starts and a decline in first-time jobless claims signaled the economy is pulling out of the worst recession since World War II. “The ‘green shoots’ sentiment will continue to dominate market psychology and will be the key driver,” Jim Pogoda, an investor in Summit, New Jersey, and a former precious-metals trader for Mitsubishi International Corp., said in an e-mail. “This should continue to boost risk appetite, weakening the dollar and boosting gold.”
Futures climbed to a record $1,033.90 in March 2008. The weekly gold survey has forecast prices accurately in 161 of 279 weeks, or 58 percent of the time. This week’s survey results: Bullish: 16 Bearish: 3 Neutral: 2
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