Gold may decline as investors leave a “cave of fear” and buy other assets such as property.Twelve of 22 traders, investors and analysts surveyed by Bloomberg News, or 55 percent, said bullion would drop next week, the second consecutive negative call. Eight people forecast higher prices and two were neutral. Gold futures for delivery in August were down 0.8 percent for the week, at $933.10 an ounce, as of midday in New York yesterday.
U.S. home resales probably advanced in May for a second consecutive month, the first back-to-back monthly gain since 2005, a Bloomberg News survey of economists showed before a National Association of Realtors report on June 23. Gold rose to an 11-month high in February as investors bought the metal to protect against plunging equities and a deepening recession.
By Claudia Carpenter, June 19, 2009, Bloomberg
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