Gold's safe haven credentials have been increased by World Bank president Robert Zoellick's suggestion that leading economies should consider readopting a modified global gold standard to guide currency movements. G20 economies should consider using gold as a reference point for market expectations of currency values, inflation and deflation as they reform the global monetary system, Zoellick wrote in an opinion article in the Financial Times. While textbooks may view gold as "old money," markets use it as an alternative monetary asset, Zoellick wrote. His comments come after the Federal Reserve's announced plans to buy $600 billion in Treasurys which has led to concerns about the dollar and the emergence of inflation and possibly stagflation.

Leaders from the G-20 gather in Seoul, South Korea, on Nov. 11-12 and tensions over currency wars look set to dominate. Beijing has again criticized US monetary policy and QE2 with Zhu Guangyao, the Chinese vice minister of finance, saying at a briefing on Monday "that the US as a major reserve currency issuer, launching a second round of quantitative easing at this time"  ... "did not recognise its responsibility to stabilise global markets and did not think about the impact of excessive liquidity on emerging markets."

China's increasing importance to the gold market is also being seen in gold demand from China which remains robust and continues to rise. Many Chinese people, like their government, are concerned about growing inflation and are buying gold as a hedge.