Gold seen rallying as Fed seen slowing rate hike pace

Gold may extend gains after climbing to the highest level in six weeks following disappointing monthly reports on US employment and wages, according to two analysts attending a conference in Singapore this week.

Prices will probably increase to a four-year high above $US1400 an ounce this year as a "less than inspiring" recovery means the Federal Reserve won't step up the pace of increases in borrowing costs, leaving real rates in negative territory, according to Nikos Kavalis, director and founding partner of Metals Focus, an independent consultancy. Toronto-Dominion Bank's Bart Melek said gold may touch $US1300 with a $US1275 average in the fourth quarter.

Bloomberg