UNITED STATES January 21 2015 1:15 PM

NEW YORK (Scrap Register): As economic weakness in China and Europe continues to dampen global growth prospects, Bank of America Merrill Lynch has revised some of its previous forecasts slightly higher, including gold.

BofAML reinforces their view that gold prices are stabilising this year and adding that they expect gold prices to average around $1,238 an ounce in 2015, up 1% from its previous forecast of $1,225 an ounce.

Looking at the metal’s price on a quarterly basis, BofAML expects gold to be weakest in the second quarter of this year, at $1,150 an ounce, and strongest in the fourth quarter, at $1,300 an ounce.

The American bank highlights subdued mine supply growth, sustained demand from emerging markets and uncertainty in the marketplace as main drivers for higher gold prices this year. Some risks include a deterioration of investor sentiment, a rise in interest rates, strong equity markets and increased scrap supply, among others.

However, BofAML is still optimistic about the global economy this year, which may hinder a further rise in gold prices. They still believe that global growth will pick up towards the second half of this year.