Gold May Extend Rally to Record on Demand forGold May Extend Rally to Record on Demand for Inflation Hedge
By Pham-Duy Nguyen
Feb. 25 (Bloomberg) -- Gold may rise for a second straight week, extending a rally to a record, as higher energy costs boost demand for a hedge against inflation.
Nineteen of 31 traders, investors and analysts surveyed by Bloomberg from Mumbai to New York on Feb. 21 and Feb. 22 advised buying gold, which rose to $947.80 an ounce last week in New York, a 4.6 percent gain that was the biggest since November. Seven said to sell, and five were neutral.
Gold climbed to a record $958.40 on Feb. 21 as crude oil reached $101.32 a barrel, the highest ever. The metal rallied 31 percent last year as consumer prices rose at the fastest pace in 17 years and the dollar fell to a record low against the euro.
A majority of analysts surveyed Feb. 14 and Feb. 15 had anticipated last week's gain in gold. The survey has forecast prices accurately in 124 of 199 weeks, or 62 percent of the time.
This week's survey results: Bullish: 19 Bearish: 7Neutral: 5
To contact the reporter on this story: Pham-Duy Nguyen in Seattle at pnguyen@bloomberg.net.
Last Updated: February 24, 2008 12:31 EST