It seems prices of the safe haven yellow metal gold have nowhere to go but further down in the pits in 2014.

According to Swiss broker UBS, gold prices will tether at $1,200 an ounce in 2014, downgraded by nine per cent further from an earlier $1,325 an ounce.

Seized gold bars are kept on displayed by custom officers at the international airport in Kolkata in this November 19, 2013 file photo. Indian gold smugglers are adopting the methods of drug couriers to sidestep a government crackdown on imports of the precious metal, stashing gold in imported vehicles and even using mules who swallow nuggets to try to get them past airport security. REUTERS/Stringer

"Struggle for gold not only rests with the predominant selling interest among investors currently, but with limited positive catalysts looking forward, gold is unlikely to regain its former appeal," the broker said.

What's worse, the forecast could rally on towards the year 2015, basically unchanged at the same mark.

Prices of silver will likewise be affected.

"We expect no material recovery in silver prices, downgrading 2014 by 18 per cent to $20.5 an ounce and 2015 by 13 per cent to $21.0 an ounce."

Gold mining firms will surely be forced to slash capital expenditures as well as exploration spending based on the measly $1,200 an ounce all-in production cost.

"Safe havens like gold will become even more unfashionable up ahead due to a more upbeat global economic outlook, the reduction of tail risks, and investors' apparently unsatiated risk appetite," UBS said.

"With the market now increasingly refocusing on QE-tapering, gold has resumed its downward trend. Together with weak underlying sentiment, as evidenced by the disappointing price performance even in the face of bad news such as tensions in Syria and the US government shutdown and given constrained Indian demand under the current regulatory framework, UBS believes the recent downward pressure will continue and sees a lack of supporting catalysts."