JP Morgan sees gold at $6,300 an ounce by year-end

Gold prices are seen to skyrocket more to $6,300 an ounce by year-end, according to JP Morgan

JP Morgan expects demand from central banks and investors to drive gold prices to $6,300 per ounce by year-end.

"We remain firmly bullishly convicted in gold over the medium-term on the back of a clean, structural, continued diversification trend that has further to run amid a still well-entrenched regime of real asset outperformance vs paper assets," the brokerage said in a note.

The US bank indicated that central bank gold purchases could reach 800 tons this year, supported by the continued trend toward reserve diversification.

As for silver, the bank noted that trading is more cautious, given the difficulty in identifying and measuring the factors driving its continued price increase.