Gold may rise next week after prices dropped, making the precious metal more attractive to investors, according to a Bloomberg News survey. Five of 11 traders, investors and analysts surveyed by Bloomberg, or 45 percent, said the metal will climb next week. Four predicted lower prices and two were neutral. Gold for February delivery was down 1.1 percent for the week at $1,344.90 an ounce at 11 a.m. yesterday on the Comex in New York. Futures, down 5.4 percent this year, headed for their third straight weekly decline on speculation that signs of economic recovery in the U.S. and European Union will reduce the need for a haven investment. Prices rallied 30 percent in 2010, the 10th consecutive annual gain, and climbed to a record $1,432.50 on Dec. 7. Investors may find prices appealing after the declines, said Matthew Turner, a precious metals strategist at Mitsubishi International Co. in London. “For once it’s come down a lot,” Turner said by phone. “We could see some bargain hunting by investors.” 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 Jan. 14. “Repositioning for the start of the year continues and investors are torn between edging towards more riskier investments and deepening concerns towards inflation,” said James Moore, an analyst at TheBullionDesk.com in London. The weekly gold survey that started six years ago has forecast prices accurately in 196 of 346 weeks, or 57 percent of the time. This week’s survey results: Bullish: 5 Bearish: 4 Neutral: 2 To contact the reporter on this story: Tony C. Dreibus in Chicago at tdreibus@bloomberg.net To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net.

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