Gold's best forecasters see rally resuming as confidence in the metal returns

Singapore

GOLD, one of this year's best performing assets, has room to extend its advance, according to top-ranked forecasters, even as the rebound shows signs of losing steam.

Capital Economics Ltd and Cantor Fitzgerald LP are bullish as real interest rates will probably stay low even if the Federal Reserve raises borrowing costs in response to higher inflation. Bullion may surge to US$1,350 an ounce by the end of the year, says Simona Gambarini, an economist at Capital Economics in London. The metal will continue to climb, though at a slower pace, says Rob Chang at Cantor Fitzgerald in Toronto. Gold traded at US$1,235 on Monday.