Gold futures fell as analysts brought forward estimates for the Federal Reserve to raise U.S. interest rates, crimping demand for the metal as an inflation hedge.
Goldman Sachs Group Inc. revised its forecast for higher borrowing costs to the third quarter of 2015, rather than the first three months of 2016, citing an accelerating economy. The bank joins JPMorgan Chase & Co. and Bank of Tokyo-Mitsubishi UFJ Ltd. in moving up its estimates. The Fed has kept its benchmark lending rate near zero percent since December 2008.
Gold climbed for five straight weeks as central bank policy makers said after their June gathering that rates will stay low for a “considerable time.” Minutes from the meeting will be published on July 9. Gold slumped 28 percent last year on concern that the Fed would taper monetary stimulus as the economy improved.