Although gold has fallen 20%, this is from an exceptional peak last year when bullion breached $1,900 an ounce.
'Markets continue to be hugely volatile and this fall does not change the outlook. In the short-term the gold price is likely to remain volatile, while in the medium to long-term the ongoing economic environment will see investors return to gold as an attractive source of value and safe haven,' Damaskos said.
Like a number of gold and commodity managers, Damaskos believes shares in gold miners have the potential to outperform bullion.
Evy Hambro, BlackRock's Gold & General star, said that even though shares in the sector have been under pressure from the wider turmoil, supply and demand dynamics are positive, leaving commodity-related equities ripe for a rebound.
Similarly, renowned investor Marc Faber predicts gold shares will do well while the precious metal will underperform over the shorter term. Like Damaskos, Faber said last month he could see little alternative to a drop in gold following its stellar run over the 12 months to last September.
Gold spot is currently at £1,590, 1.02% up on Thursday's close, and Damaskos expects this upward trend to slowly gain traction as the eurozone crisis refuses to die away.
'When the eurozone crisis enters its next chapter, it is likely investor demand will, again exceed supply, pushing the price of gold to higher levels,' Damaskos (pictured) said.