BofA sees gold hitting $3,000/oz., silver at $50/oz.

So even after the recent drop in so-called 'real' or inflation-adjusted interest rates, continued fiscal spending and central bank actions meant that interest rates would remain low, reinforcing the yellow metal's allure.

The broker was even more upbeat on the prospects for silver, because it too would benefit from the same backdrop as gold, as well as stronger demand on the back of 'green spending'.

Silver at $35/oz. was feasible in 2021 and over the medium-term it could roughly double to $50/oz., they said.

In the case of palladium, BofA expected a market deficit to persist in both 2020 and 2021 and hence saw scope for further price gains.

BofA also highlighted how increased green spending would power prices for 'metals important for future technologies' "as a reduction in the usage of fossil fuels means the world needs to be powered by alternative solutions, almost all of which require mined commodities."

Platinum for one "should benefit from the hydrogenisation of the economy in the coming years," the broker said.

It also raised its short-term price deck for iron ore, forecasting prices of $95/$85/$75 per tonne over 2020-22, citing a combination of downside risks for Brazilian supplies and higher demand and production for steel in the People's Republic of China.