Bullish sentiment in the gold market has increased significantly. After the bankruptcy of two U.S. commercial banks, investors are looking for safe-haven assets.

Some banks have begun to raise their gold price forecasts in anticipation of the threat of a new banking crisis.

Tensions have spread around the world, with shares of one of Europe's biggest banks, Credit Suisse, down more than 30% Wednesday after an annual report in which the Bank reported a loss of about $8 billion.

Despite rising risks, commodity analysts at Commerzbank are sticking to their year-end gold price of around $1,950 an ounce, growing upside potential.

In her latest report on gold, Thu Lan Nguyen, head of commodity research at the German Bank, stated that gold's path will be determined by the ongoing banking crisis and its impact on the Federal Reserve's monetary policy.

If further bankruptcies follow, the price of gold will increase. However, gold will be vulnerable to a correction if fears of a more severe banking crisis fade.

Volatility aside, Commerzbank still believes that the Federal Reserve will cut rates by the end of the year. And such a turn will continue to support gold prices.