Gold could reach $1,200 a troy ounce over the next 12 months, according to Andrew Garthwaite, global equity strategist at Credit Suisse, who recommends that investors stay overweight in gold and gold equities.

“The most important driver of the gold price is the real Fed Funds rate,” says Mr Garthwaite. “If the inflation adjusted Fed Funds rate is below 2 per cent, the gold price tends to rise.”