Interest-rate halts would boost the appeal of the precious metal
Gold prices may rise for a third straight week if the U.S. Federal Reserve halted interest-rate increases that might cause the dollar to slide, Bloomberg News reported on Sunday.
Interest-rate halts would boost the appeal of the precious metal as an alternative to the U.S. currency, analysts said.
Twenty-one of 35 traders, investors and analysts surveyed by Bloomberg News from Sydney to Chicago on Aug. 3 and Aug. 4 advised buying gold. Seven advised selling, and seven were neutral.
Gold price rose 1.3 percent last week to 656 dollars an ounce in New York.
Gold has climbed 26 percent this year as the dollar slid 8.7 percent against the euro. The dollar fell to a two-month low last week on increasing speculation the Fed will take a breather after boosting borrowing costs at each of the 17 policy meetings since June 2004.