Gold may fall as stronger dollar curbs demand
Monday, 2 November 2009
LONDON, Nov 01 (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 per cent, said bullion would fall this week. Seven forecast higher prices and three were neutral. Gold for delivery in December was down 0.8 per cent this week at $1,047.50 an ounce by 12:55 pm Thursday in New York, heading for the first weekly decline in five weeks.
The US Dollar Index, a six-currency gauge of the greenback's value, has gained 1.3 per cent from a 14-month low on October 21. Gold typically moves inversely to the US currency. The metal rose to a record $1,072 on October 14.
"High-yielding currencies are still struggling," said Walter de Wet, a London-based Standard Bank Limited 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 per cent of the time.
This week's survey results: Bullish: 7, Bearish: 13, Neutral: 3
Thirteen of 23 traders, investors and analysts surveyed by Bloomberg, or 57 per cent, said bullion would fall this week. Seven forecast higher prices and three were neutral. Gold for delivery in December was down 0.8 per cent this week at $1,047.50 an ounce by 12:55 pm Thursday in New York, heading for the first weekly decline in five weeks.
The US Dollar Index, a six-currency gauge of the greenback's value, has gained 1.3 per cent from a 14-month low on October 21. Gold typically moves inversely to the US currency. The metal rose to a record $1,072 on October 14.
"High-yielding currencies are still struggling," said Walter de Wet, a London-based Standard Bank Limited 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 per cent of the time.
This week's survey results: Bullish: 7, Bearish: 13, Neutral: 3