Gold is likely to rise this week...
Gold may rise this week, ending four straight weekly declines, on speculation the Federal Reserve will limit any interest-rate increases this year, a Bloomberg survey shows.
Twenty-one of 35 traders, investors and strategists polled in New York, London, Singapore, Sydney and other cities on Thursday and Friday advised buying gold. Seven recommended selling, and seven said they would hold the precious metal.
Gold futures in New York have fallen 8.6 percent from a 15- year high of $433 an ounce on April 1. The drop was spurred in part by the dollar's 6.4 percent rally against the euro this year on expectations the Fed will boost its loan-rate benchmark from a 45-year low. A rising U.S. currency erodes the appeal of gold as an alternative to other dollar-denominated assets.
``It will soon dawn on the financial community that the Fed will be hamstrung to raise rates in any meaningful way without deep-sixing the American consumer and, by extension, the entire U.S. economy,'' said Douglas Pollitt, an analyst at brokerage Pollitt & Co. in Toronto.
Gold for June delivery fell to $5.90, or 1.5 percent, to $395.70 an ounce last week on the Comex division of the New York Mercantile Exchange. The dollar rose for the third week in a row and on Thursday reached its highest against the euro since late November. Gold futures for June delivery were little changed at $394.70 an ounce at 9:09 a.m. in Singapore