Gold had a tumultuous run in 2013 but don't expect any respite in the new year, said UBS, which anticipates double-digit percentage losses over the next 12 months.
"For investors who have gold, it's just going to be an awful year again," said Dominic Schnider, head of non-traditional asset classes at UBS Wealth Management, who sees the precious metal falling to $1,050 an ounce this year, 13 percent below current levels.
(Read more: Gold sees biggest annual loss in 3 decades)
"People have been talking about [the Federal Reserve's] taper, but I would really think about rate hikes. If you make a 12-month forecast you need to look into 2015 and rate hikes are on the cards," he said. A rising interest rate environment typically makes owning gold more expensive as it is not an income-producing asset.
With the global economic growth and inflation mix looking promising in 2014, the risk-reward balance is now skewed toward risky assets, Schnider added.