2015 is going to be the year of the strong dollar and rising interest rates in the US. This, in combination with the absence of inflationary pressure, will make is so that different precious metals will have a tough year, in Morgan Stanley's opinion.

The investment bank also underlined that it expects the gold price to go down over the coming quarters. The lower price will create significant challenges for the mining sector, Morgan Stanley analysts say, because of the rise of mining costs over the last decade. For now, Morgan Stanley forecasts production cost to amount to 1254 dollars. 

Gold Price

The robust growth of consumers in India and China will only push the demand for physical gold (think of jewelry, gold bars, coins…). The strong correction in the gold price in 2013 has created a lot of demand, according to Morgan Stanley, and although growth in demand has slowed down, the investment bank expects India and China to spark demand worldwide.

Although Morgan Stanley does expect the above to happen over the course of the year, it forecasts that the price of gold will regain strength in the coming years, which is visible on the above chart from the investment bank's report.