Andrew Wilshire Experts Speak out on Gold

EXPERTS PUSH GOLD

Gold may rise for a third straight week on speculation that higher energy costs will boost demand for the precious metal as an inflation hedge.

Seventeen of 32 traders, investors and analysts surveyed from Mumbai to Chicago on May 15 and May 16 advised buying gold, which rose 1.6 percent to $889.90 an ounce last week in New York. Crude-oil futures surged to a record $127.82 a barrel on May 16. Gold rallied 31 percent last year, when a 57 percent surge in oil helped spark the biggest gain in consumer prices in 17 years.

Gold reached a record $1,033.90 on March 17.

GOOD TRACK RECORD

A majority of analysts surveyed May 8 and May 9 anticipated gold’s gains last week. The survey has forecast prices accurately in 129 of 211 weeks, or 61 percent of the time.

This week’s survey results: Bullish: 17 Bearish: 3 Neutral: 12.

Gold futures rose early Monday as weakness in the U.S. dollar and surging crude-oil prices boosted demand for the precious metal.

Gold for June delivery gained $8.70 at $908.50 an ounce on the New York Mercantile Exchange.

On Friday, gold closed with a gain of $19.90, or 2.3%, at $899.90 an ounce,
“Bullion traded on a firmer footing as the market responded to a softer dollar tone,” said analysts at Action Economics. “The break higher has been influenced by inflation concerns after oil also pushed higher.”