SimonDerrick, chief currency strategist at Bank of New York Mellon in the U.K., also said he expects to see a weaker U.S. dollar, which will help boost gold prices.
"Although the move to provide such guarantees is undoubtedly better than the highly destabilising alternative, this will raise questions about how these guarantees would be funded were they to be called upon, " said SimonDerrick from Bank of New York Mellon.