Gold may fall for a second straight week on speculation the Federal Reserve will begin to raise U.S. interest rates this year...
Gold may fall for a second straight week on speculation the Federal Reserve will begin to raise U.S. interest rates this year, boosting the dollar and reducing the appeal of the precious metal as an alternative investment.
Seventeen of 35 traders, investors and analysts surveyed from Mumbai to Chicago on May 29 and May 30 advised selling gold, which fell 3.7 percent to $891.50 an ounce last week in New York. Eight said to buy, and 10 were neutral.
The Fed may increase its benchmark rate from 2 percent, Chicago futures show. The rate was slashed from 5.25 percent in mid-September in a series of seven cuts that ended in April. Gold surged to a record $1,033.90 on March 17 and the euro to $1.6019, an all-time high, on April 22.
Gold's decline last week surprised a majority of analysts surveyed May 22 and May 23. The survey has forecast prices accurately in 130 of 213 weeks, or 61 percent of the time.