The rally in gold prices may have further to run yet, according to RBC Capital Markets. Commodity strategists at the group, led by Helima Croft, are forecasting the spot price will lift to $US1547/oz by the March quarter next year, representing a 3.4 per cent increase from the current level of $US1495.80/oz.

The precious metal hit a six-year high last week, extending the rally over the past year to nearly 30 per cent.

"It is quite clear that the intensified US-China trade war, Fed rate policy, and general market concern have breathed new life into gold, but the risks do not stop there," strategists told clients.

"The greater appreciation of risk underlying the move lends notable sustainability to elevated prices."

According to a survey conducted by UBS at the annual Diggers & Dealers conference in Kalgoorlie earlier this month, 56 per cent of respondents said gold would be the top performing commodity in the 12 months ahead.

by David Scutt