BLBG: Gold May Extend October Decline as Investors Exit Commodities
By Millie Munshi
Oct. 27 (Bloomberg) -- Gold may fall for a third straight week as investors exit commodities on speculation the world is headed for a recession that will curb demand for raw materials.
Fifteen of 28 traders, investors and analysts surveyed from Mumbai to Chicago on Oct. 23 and Oct. 24 advised selling gold, which fell 7.3 percent to $730.30 an ounce last week in New York. Nine said to buy, and four were neutral.
Investors pulled $525 million from commodity and energy funds in the week ended Oct. 22, researcher EPFR Global said. The Reuters/Jefferies CRB Index of 19 raw materials dipped 9.3 percent last week and touched a four-year low. Gold has plunged 17 percent this month and reached a 13-month low on Oct. 23.
Gold's drop last week surprised the majority of analysts surveyed Oct. 16 and Oct. 17. The survey has forecast prices accurately in 139 of 234 weeks, or 59 percent of the time.
This week's survey results: Bullish: 9 Bearish: 15 Neutral: 4
To contact the reporter on this story: Millie Munshi in New York at mmunshi@bloomberg.net
