Seventeen of 34 traders and analysts surveyed said gold would advance next week, 10 were bearish and seven predicted little change. Bullion fell 4.9% to $1,593.20 an ounce in London this year after 12 consecutive annual advances.
Bullion holdings in exchange-traded products fell 6.1% since the start of the year, data compiled by Bloomberg show, as investors chased higher returns from stocks markets. The MSCI All-Country World Index is trading at a 4 1/2-year high.
The Dow Jones Industrial Average extended the longest rally since 1996 and the benchmark Standard & Poor’s 500 Index was within 0.1% of a record yesterday amid signs of economic recovery in the U.S.
“The Chinese picture has been weaker, not only in terms of economic data, but also the clampdown on real-estate market,” said Nic Brown, the London-based head of commodities research at Natixis SA. “But if the U.S. equity market is correct, can we really expect Chinese growth to disappoint again this year?”