The headwinds for gold appear to be mounting. Stocks are rising to new highs, potentially drawing fresh money into the equity market. Meanwhile, the U.S. dollar index is nearly at a one-year high, which hurts the classic gold-bug argument that the dollar will weaken and only gold can truly store value.
As for fear, it’s nearly absent. The CBOE Volatility Index, or the VIX, is back at levels that indicate a lack of concern about the markets, which is another strike against safe-haven assets like gold.
Despite everything that’s been thrown gold’s way, the precious metal has managed to hold its own, falling only slightly below the key $1,300 per ounce level, and looking to end August about perfectly flat.