Gold may advance as investors buy after fall

Eleven of 21 traders, investors and analysts surveyed by Bloomberg, or 52 percent, said bullion would rise next week. Seven forecast lower prices and three were neutral. Gold for delivery in February fell 0.7 percent this week to US$1,103.40 an ounce by 3:20 a.m. in New York.

Gold futures are heading for a fourth weekly decline and have dropped 10 percent since reaching a record US$1,227.50 an ounce on Dec. 3. Gold tends to move inversely to the dollar, which has gained 4.2 percent against a basket of six major currencies in the period. Bullion is still up 25 percent this year and set for a ninth annual gain.

The weekly gold survey has forecast prices accurately in 169 of 293 weeks, or 58 percent of the time.

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