Its 2019 edition of the relevance of gold as a strategic asset said institutional investors had embraced alternatives to traditional assets including stocks and bonds, with many drawn to gold's role as a diversifier.

"Gold is becoming more mainstream," the report said.

It said this had been driven in part by new ways to access the market, such as gold-backed exchange traded funds, the expansion of Asia's middle class and a renewed focus on effective risk management following the 2008/09 financial crisis in the US and Europe.

The report said there were four key roles gold could play in a portfolio, namely a source of long-term returns; a diversifier to mitigate losses in times of market stress; a liquid asset with no credit risk that had outperformed fiat currencies; and a means to enhance overall portfolio performance.

"Our analysis shows that adding 2%, 5% or 10% in gold over the past decade to the average pension fund portfolio would have resulted in higher risk-adjusted returns," it stated.

"There is a good reason behind gold's price performance: it trades in a large and liquid market, yet it is scarce."

Mine production had increased an average 1.4% per year for the past 20 years, the report said, while at the same time consumers, investors and central banks had contributed to higher demand.

It noted the gold price tended to increase more when stocks pulled down sharply, but said due to its dual nature as a luxury good, its price was also supported by income growth.

The industry body had last month said cryptocurrencies' performance in the 2018 fourth quarter market downturn demonstrated they were no substitute for gold as a safe-haven asset.

After falling to US$1,173.70 on the spot market in August, the gold price was trading earlier around $1,313/oz, a similar level to 12 months ago.