The gold price is trading slightly higher today as another major bank joined calls that the precious metal is heading higher in the nearest future.

In a report published earlier in the week, analysts at RBC Capital Markets said they are increasing their forecast for gold next year, and expect the price to reach US$1,500 which is well up from their previous prediction of US$1300, although they see prices pulling back to US$1,300 by 2020.

They noted that global fears surrounding Brexit as well as expectations that the US Federal Reserve will hold off lifting interest rates this year, putting pressure on the US dollar will see the Gold price move higher.

A weaker US dollar usually supports gold as it is priced in US dollars which makes it cheaper for holders of other currencies,

 “We maintain our positive outlook for gold in the current environment, given the elevated geopolitical risk in the U.K./euro zone, increasing systemic risk with increasing negative yields for government bonds and the Fed likely to pursue a more dovish monetary policy,” Capital Market analysts said in the report.

They also noted that any sudden drop in the gold price will bring buyers from the sidelines and ultimately under pin the metal,

“We believe that the sharp increase in buying volumes indicates appetite for sticky, fundamental demand in the gold space, and that this should provide a support for a higher gold price as investors continue to buy any pullbacks,” they added.