A jump to safety amid economic termoil has bolstered the US dollar, which hurt dollar-denominated gold and made bullion more expensive when priced against other currencies. On Wednesday, gold traded at around $800 per ounce, about 20 percent lower than its all-time high $1,030 in March, driven by the dollar resurgence in the wake of plummeting crude oil prices and a worldwide recession.

The massive US Government market stimulus plan by the to help keep the economy afloat would lead to a lessened dollar value and higher inflation, which should bode well for gold in the long term, analysts said.