20
August
Gold May Advance as Recovery Concern Spurs Demand, Survey Shows (GC in Bloomberg)
20 August 2010 Bloomberg.com
Gold may advance as concern that the global economic recovery is slowing increases demand for the metal as a protection of wealth, a survey found.
Nineteen of 24 traders, investors and analysts surveyed by Bloomberg, or 79 percent, said the metal will gain next week. Four forecast lower prices and one was neutral. Gold for December delivery was up 1.7 percent for this week at $1,237.40 an ounce at 11 a.m. yesterday on the Comex in New York. Futures reached an all-time high $1,266.50 on June 21.
Bullion is headed for a third weekly advance and gold exchange-traded fund holdings in the past two weeks pared some of the decline from last month’s record as concern deepened that the global recovery may falter. Manufacturing in the Philadelphia region unexpectedly shrank in August for the first time in a year, while initial jobless claims rose in the week to Aug. 14, U.S. data showed yesterday.
“There’s still a lot of investment demand,” said Mark O’Byrne, executive director of brokerage GoldCore Ltd. in Dublin. “There’s growing concern about the economic recovery. Gold is technically looking better.”
