The outlook for gold continued to sour Thursday with BNP Paribas forecasting a a 2015 average of $1,160/oz and $975/oz in 2016, the French bank said in a research note.

"Future policy action by the US Federal Reserve remains high on gold's agenda. It will continue to dictate the pace at which the dollar appreciates (and official sector demand for gold declines) and accordingly how much downward pressure will be exerted on gold," BNP analysts Harry Tchilinguirian and Stephen Briggs said.