Mergers and acquisitions activity in the gold sector is likely to further increase this year, according to a new report, spurred on by the rising value of gold bullion, and providing a stream of potential mandates for bankers in the sector.

Bullion is currently hovering close to historic highs of $1,000 (€783) an ounce. Global demand for gold has rocketed since the advent of the financial crisis, as investors seek to diversify away from equity markets and increase exposure to 'safe' asset classes.