Gold May Advance on Libya, Europe Debt Concern, Survey Shows

March 25 (Bloomberg) -- Gold may extend gains from a record as fighting in Libya and Europe’s debt crisis spur demand for an alternative investment, a survey found.

Seventeen of 19 traders, investors and analysts surveyed by Bloomberg, or 89 percent, said bullion will rise next week. Two predicted lower prices. Gold for April delivery was up 2.2 percent for this week at $1,446.70 an ounce at 12:23 p.m. yesterday on the Comex in New York after reaching a record $1,448.60 earlier that day.

U.S. and allied warplanes carried out further strikes against Muammar Qaddafi’s ground forces as the leader’s loyalists increased their attacks on cities. Portugal moved closer to a bailout after Prime Minister Jose Socrates’s offer to resign left his government in limbo as European Union leaders try to address the region’s debt crisis.

“The market got a boost from ongoing violence in the Middle East and North Africa region,” saidAndrey Kryuchenkov, an analyst at VTB Capital in London. European debt “troubles” linger, and “as far as gold is concerned, it is exactly such fears that drove bullion higher late last year,” he said.

The attached chart tracks the results of the Bloomberg survey, with the red bars derived by subtracting bearish forecasts from bullish estimates. Readings below zero signal that most respondents expect a decline. The green line shows the gold price. The data are as of March 18.

The weekly gold survey that started more than six years ago has forecast prices accurately in 202 of 355 weeks, or 57 percent of the time.

(Source: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aLR1cGy3sB28)