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Gold’s Peak Seen Over by Coutts on Dollar, Inflation Outlook

Coutts & Co. scaled back gold holdings as prices fell through $1,600 an ounce, saying that a return to the peak isn’t likely unless there’s a crisis in the Middle East, a weaker dollar or a jump in inflation.

The private-banking division of Royal Bank of Scotland Group Plc holds about 1 percent to 2 percent in its portfolios, compared with 6 percent to 7 percent at the end of the third quarter, according to Gary Dugan, chief investment officer for Asia and the Middle East. Bullion dropped through the $1,600 level in February as prices retreated for a fifth straight month.