Gold may climb as Irish debt concern spurs demand
Published 19/11/2010 | 11:30
Gold may rise as concern about the Government’s debt woes spurs demand for a protection of wealth, a survey found.
Twelve of 19 traders, investors and analysts surveyed by Bloomberg, or 63pc, said the metal will gain next week. Four predicted lower prices and three were neutral.
Gold futures for December delivery were down 1.1pc for this week at $1,351 an ounce at 11am yesterday on the Comex in New York. Futures reached a record $1,424.30 on November 9.
Central Bank Governor, Patrick Honohan, said he expects the country to ask for a “substantial” bailout from the European Union and International Monetary Fund to rescue its debt-laden banks. Concern earlier this year that Greece may go bankrupt helped push gold to then-record prices.
The metal may advance “if matters get worse in the euro zone and investors scramble for the safety of bullion,” said Andrey Kryuchenkov, an analyst at VTB Capital in London.
“The downside will remain limited for now, with currency risk still at the head of investors’ agenda.”