Low interest rates are likely to drive fresh investment in gold this year, potentially pushing prices above $1,400 an ounce despite a well-supplied market, an industry report showed on Thursday.

"Overall, we forecast a modest 3 percent increase in the full-year average to $1,285 (an ounce). This, however, hides a far more aggressive intra-year rise to a peak that could be as high as $1,475 before the end of the year."