BLBG: Gold May Fall as Stronger Dollar Curbs Demand, Survey Shows
Oct. 30 (Bloomberg) -- Gold may decline as a stronger dollar curbs demand for the metal as an alternative investment, a survey showed.
Thirteen of 23 traders, investors and analysts surveyed by Bloomberg, or 57 percent, said bullion would fall next week. Seven forecast higher prices and three were neutral. Gold for delivery in December was down 0.8 percent this week at $1,047.50 an ounce by 12:55 p.m. yesterday in New York, heading for the first weekly decline in five weeks.
The U.S. Dollar Index, a six-currency gauge of the greenback’s value, has gained 1.3 percent from a 14-month low on Oct. 21. Gold typically moves inversely to the U.S. currency. The metal rose to a record $1,072 on Oct. 14.
“High-yielding currencies are still struggling,” said Walter de Wet, a London-based Standard Bank Ltd. analyst. “This indicates a struggle for commodity prices. Therefore, we foresee downside in precious metals prices.”
The weekly gold survey has forecast prices accurately in 165 of 285 weeks, or 58 percent of the time.
This week’s survey results: Bullish: 7, Bearish: 13, Neutral: 3
To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net