Attractive valuation plus renewed demand for physical gold could be putting a bottom in for the metal that has been riding a wild bout of volatility.
Gold rallied 3 percent last week, primarily thanks to surging demand for the actual metal rather than the funds that have become so popular with investors trying to cash in on the price surge in recent years.
One analysis suggests that even though the near term remains somewhat murky, the longer outlook remains solid.
"Depressed price levels were perceived as an attractive entry point by physical buyers and bargain hunters," ETF Securities said. "The longer-term fundamental outlook for gold has not changed and appears robust in our view, despite the sharp falls seen in recent weeks."
Gold has taken a beating since hitting an intermediate high in October, due to several factors including profit-taking, dwindling inflation fears and a general move to stocks that has been fueled by aggressive Federal Reserve monetary easing policies.