New York/Singapore — For top gold forecaster BNP Paribas, bullion bulls are up against a clear and present danger — the US Federal Reserve. The central bank’s plan to raise interest rates again this year, while potentially reducing its balance sheet, is negative for the non-interest bearing asset, says Harry Tchilinguirian, the head of commodity markets strategy at BNP Paribas in London, which topped Bloomberg’s gold accuracy rankings in the second quarter. He’s among the most bearish forecasters, betting bullion will drop to $1,165 an ounce in the fourth quarter, from $1,225 on Thursday. Gold posted its first monthly loss this year in June as indications of stable economic growth cut demand for haven assets and investors looked past geopolitical concerns, including US tensions with North Korea and conflict in the Middle East. At the same time, central banks are signaling higher borrowing costs, prompting hedge funds and other large speculators to reduce long positions in US bullion...
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