Chicago Tribune – Gold prices may extend gains for a sixth year in 2006 as hedge funds buy the precious metal to diversify from stocks, bonds and currencies.
The price of bullion may rise 18 percent, to average $525 an ounce, up from $445 last year, according to the median forecast of 29 analysts, traders and investors surveyed by Bloomberg News.
Hedge funds and other speculators more than tripled their net long positions, or bets prices will rise, in New York gold futures in the past five months. Inflation, the U.S. budget and currentaccount deficits, and the dollar led investors to buy gold.
