Gold May Rise for 2nd Week on Inflation Concern, Survey Shows

Gold may rise for a second week, extending a rally that sent prices to a 25-year high, as investors buy bullion as a hedge against inflation.

Twenty-three of 37 traders, investors and analysts surveyed from Sydney to Chicago on Feb. 16 and Feb. 17 advised buying gold, which last week rose $1.10 to $554.60 an ounce in New York. Ten respondents advised selling and four were neutral.

Jim Rogers, who co-founded the Quantum hedge fund with George Soros in the 1970s, said in a Feb. 14 interview that gold's rally will continue, eventually topping its record high of $873 an ounce. U.S. wholesale prices rose 0.3 percent in January, and costs excluding food and fuel increased by the most in a year, the government said Feb. 17.

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