BLBG: Gold May Rise on Demand for Haven Amid Equity, Banking Turmoil
Gold may rise for a second straight week as investors seek an alternative to stocks and bonds.
Eighteen of 22 traders, investors and analysts surveyed from Tokyo to Chicago on March 5 and March 6 advised buying gold, which rose 20 cents last week to $942.70 an ounce in New York. Four said to sell.
Gold is up 6.6 percent this year. The Standard & Poor’s 500 Index has dropped 24 percent amid a deepening recession, and U.S. Treasuries are down 2.6 percent. Shares of Citigroup Inc., once the world’s biggest bank by market value, dropped below $1 last week after more than $37.5 billion in losses.
Most traders surveyed on Feb. 26 and Feb. 27 anticipated last week’s gain. The survey has forecast prices accurately in 150 of 252 weeks, or 60 percent of the time.