Reflecting its bullish outlook towards the yellow metal, ANZ Bank opened on Friday its second gold bullion vault in Asia at the Singapore FreePort. The facility, capable of storing 50 metric tonnes of gold, actually started operating in Singapore in July.

ANZ has similar vaults in Hong Kong, Perth and Zurich, disclosed ANZ co-head of Fixed Income, Currencies and Commodities Eddie Listorti. Bloomberg reckoned the new facility could store $2.13 billion worth of gold.

He said the facility is state-of-the-art and is bullet proof.

"Singapore really does want to be a serious financial hub and gold is, including paper, an $US88bn-a-day (globally traded) market," Mr Listorti told The Australian.

The bank forecasts gold prices to go up to $1,400 an ounce in 2014 and $1,500 in 2015, reflecting its positive outlook despite the 21 per cent dip in price of the once safe haven. It is an opposite outlook of Goldman Sachs, which foresees lower price for the yellow metal with the scale back of stimulus by the U.S. Federal Reserve.

"There is nothing that indicates the strong physical demand trend that we have seen will reverse ... We see demand coming from several institutions. Gold accounts for a very small percentage of some central banks' reserves. There's room to grow there," The Age quoted Mr Listorti.

Despite the lower gold price, demand for physical gold is strong, said Mr Listorti. ANZ distributes about 15 per cent of the global primary gold production with central banks, sovereign wealth funds and asset managers among their major clients.

Other banks that offer gold-storage service in Singapore are JPMorgan Chase, UBS and Deutsche Bank.

Central banks too have gold vaults, like this one at the Bank of England.

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