The price of gold is expected to hit $2,025 per ounce by the end of the year as the weakening global economy drives more funds into safe-haven investments, analysts from the investment bank UBS said on Thursday.

"China's demand for gold will also increase as the country's gold and jewellery market will see a tremendous growth in the coming years," said Peter Hickson, managing director of global commodity research for UBS.

However, Hickson expects the price of gold to fall to $1,725 in 2013 as the global economy rebounds and liquidity in the market improves.