FRANKFURT (MarketWatch) -- BNP Paribas on Wednesday raised its forecasts for gold prices for 2010 and 2011, citing the higher probability of quantitative easing in the U.S. and a weaker dollar than previously expected.

The bank now expects gold's price to average $1,200 an ounce in 2010 and $1,290 an ounce in 2011. Previously, BNP Paribas expected average prices of $1,190 in 2010 and $1,245 in 2011.

"There appears to be little in the way of factors that could negatively impact the gold market in the coming months," analyst Anne-Laure Tremblay wrote in a research report.