The gold price is expected to trend at $1 200/oz in 2015, with no significant catalysts expected to move the gold price higher.

Financial services firm Desjardins Capital Markets last week published its 2015 precious metals outlook, saying that near-term headwinds for the gold price, such as the US Federal Reserve’s actions and the economic outlook for the US supporting a stronger US dollar, undermined price upside this year.

The gold price would, however, be supported near current levels because of the market becoming more aware of the industry’s true all-inclusive sustaining cost (AISC) base, stronger physical demand from India and potential mine closures at high-cost operations.

“For 2015, we prefer names with healthy balance sheets, low AISC profiles and flexible project pipelines,” report author Michael Parkin noted.

Desjardins forecasts an average gold price of $1 200/oz in 2015.

The firm believes the key themes that will impact on the gold price for better or for worse this year include the potential for the US Federal Reserve to start raising interest rates and US inflation levels remaining low, growing demand from India, possible mine closures of higher-cost operations and safe-haven buying for geopolitical reasons.

On Wednesday last week, the spot gold price closed at $1 212.5/oz in New York, after jumping to its highest since December 15 at $1 222.40/oz a day earlier, as equities fell on concerns over Greece’s future in the eurozone.

Parkin said certain criteria could help some companies outperform others, including the ability to generate free cash flow and improve the financial health of their companies, new low-cost production growth coming online and benefits from existing mine optimisation or cost-reduction programmes.

Desjardins touted the names of “high conviction” companies it covered, such as Agnico Eagle, Detour Gold and Mandalay Resources, based on these criteria. The firm also said Romarco Minerals, with its Haile gold mine project, in South Carolina, was offering a high internal rate of return, having advanced the project through the permitting process over the past year, positioning the company as a potential takeout candidate.

Desjardins expects silver to average $17/oz, 4.6% above the current spot price of $16.20/oz in 2015.