Despite a rally of 6 percent from June lows, gold has higher to go over the next few weeks, JPMorgan analyst John Bridges said Monday.
"We feel that there's at least a technical bounce here," he said, adding that it was also a hedge against an economic decline. "If you're still uncertain about whether the financial crisis is truly over, then having some gold in the portfolio makes a lot of sense."
On CNBC's "Fast Money," Bridges noted strong demand for physical gold in China and India.
"That comes back to one of the key attractions of gold. It is a currency which is nobody else's liability," he said. "And so, if you have a situation where you're scared about where your currency is going, you want to buy gold. And if you're scared enough, you don't care what you pay."
(Read more: 'I would own physical gold': Marc Faber)
Bridges said that anecdotally he had heard that gold buyers were first asked whether they wanted to buy gold stocks.
"No, they wanted to buy bricks, and some of them wanted the bricks delivered to their houses. That's how scared they got," he said. "I suspect you have a similar situation in India."