Global investors' diversification away from US dollar assets may benefit European and Chinese equities, as well as gold, Thomas Fang, head of China global markets at UBS, told ChinaPerspective.

Since the outcome of trade negotiations, and geopolitical tensions can drive significant fluctuations in a particular asset class, broader asset allocation - across regions and asset classes - has assumed great importance.

"I think, in the next 1 to 2 years, another 10 percent upside for gold in dollar terms is likely," Fang said.