(Bloomberg) – Gold traders are bearish for the first time in six weeks as accelerating U.S. financial growth and weaker sales of personal bullion curbed demand for the steel.
Twelve analysts surveyed by Bloomberg expect charges to drop next week, nine were bullish and four neutral. The steel withdrew for a fifth day yesterday, the poorest mislaying mark since May 17 and dropped under $1,300 an ounce previous today for the first time since July 22. Physical demand slowed down in the past several weeks, according to Standard Bank assembly Ltd.
Gold is heading for the first yearly decline in 13 years after some investors lost belief in the metal as a shop of value. The fall that wiped $59 billion from the worth of gold capital hurt investors including hedge fund billionaire John Paulson as well as Barrick Gold Corp. (ABX) and other mining businesses. U.S. equities reached a record this week after data displayed the nation amplified 1.7% in the second quarter, more than economists surveyed by Bloomberg had expected.
Andrey Kryuchenkov, a commodity strategist in London at VTB Capital, a unit of Russia’s second-largest lender said “Why would I want to hold gold if the U.S. economy is recovering and equities are doing so well?” also added “Physical buying probably won’t be enough to revive gold and have a sustained rebound. The sentiment will still remain bearish.”