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Gold Seen Rallying From Worst Streak in Eight Years: Report
By: MT Newswires
Gold traders expect prices to rebound from the longest weekly losing streak in eight years as mounting concern that U.S. lawmakers are doing too little to control the budget deficit spurs demand for a protection of wealth, Bloomberg reported.
Twenty analysts surveyed by Bloomberg expect prices to rise next week, five were bearish and a further two were neutral. While hedge funds cut bullish bets to a four-month low last week as prices slid for a fifth week, investors are holding a near- record amount in gold-backed exchange-traded products that are now valued at $139 billion, data compiled by Bloomberg show.
The metal fell 0.8% to $1,650.40 an ounce today after U.S. Federal Reserve policy makers said they'll probably end their $85 billion of monthly bond purchases this year, according to the record of the Federal Open Market Committee's Dec. 11-12 gathering released yesterday.
While gold rose 7.1% last year, it's set for a sixth weekly loss, the worst run since May 2004.