The central banks of emerging markets and investors are forecast to stockpile bullion as a method of staving off dangers presented by monetary units losing value, chief investment officer Gary Duggan with Coutts & Co. said during an interview in Singapore.
"The reason we're positive on gold is that major currencies around the world lack credibility," the top official for the division in Asia and the Middle East told the news source. "The natural buyers of today are emerging-market central banks, and over and above that, it's going to be further investment demand. People continue to naturally gravitate to gold."
At 7:54 p.m. on Wednesday, gold futures edged down 0.08 percent, a $1.30 loss to $1,641.60 per troy ounce.
Reuters reports the yellowish metal was hovering about its top value since early May on Wednesday as investors held out hope for the central bank of Europe advocating for nations victimized by the sovereign debt crisis.