Speculation that bailout will fail may lift gold price

Gold may rise for a second straight week on speculation that government intervention will fail to ease the credit crisis, boosting the appeal of the precious metal as a haven from market turmoil.

Twenty-five of 38 traders, investors and analysts surveyed from Mumbai to Chicago Thursday and Friday advised buying gold, which rose 3.1 percent last week to $859 an ounce in New York. Five said to sell, and eight were neutral.

Investment in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, reached a record 765.7 metric tons on Oct. 9 as coordinated interest-rate cuts by central banks failed to unclog credit markets.

Most analysts surveyed on Oct. 2 and Oct. 3 anticipated gold's gains last week.