Hedge funds raised their bullish gold bets to a six-week high, splitting with analysts at Technical Research Advisors LLC and Goldman Sachs Group Inc. who are predicting more declines after last year’s rout.
The Nasdaq Composite Index has entered a bull market and stocks may continue to rally through the end of March, according to Louise Yamada, who said in December that equity charts were signaling further losses.
Gold may resume a slump following the July rally of 7.3 percent, the most in 18 months, said Louise Yamada, the managing director of Technical Research Advisors LLC, citing momentum and moving-average signals.
U.S. stocks fell, pulling the Standard & Poor’s 500 Index down from the highest level since 2008, while the euro weakened and Treasuries gained as Spain raised its budget-deficit estimate for 2012 and German retail sales unexpectedly declined. Bond risk rose and oil declined.
Stocks rose, while Treasuries retreated, as an increase in U.S. service-industry growth tempered concern the largest economy was slowing and a report said Europe’s bailout fund was preparing a credit line for Spain. The yen fell as Japan’s finance minister said he’s concerned about the currency’s rise.
U.S. stocks rose this week, with the Standard & Poor’s 500 Index completing its best February since 1998, as data on housing and the jobs market improved and monthly sales from Gap Inc. to Ford Motor Co. beat estimates.
Michael Krauss , the JPMorgan Chase & Co. analyst who correctly predicted the bottom of the 2007-2009 bear market in U.S. stocks , said the rally that has started since then is unlikely to end with the rout this month.