Gold has been trying to break above $ 1,800 since mid-July. Disappointing US employment figures pushed it to soar to record highs, but sadly it could not hold on and tumbled again.
Now, there is growing concern that gold's failure to maintain a bullish momentum will start attracting sellers and push prices back to August lows - below $ 1,700 an ounce.
It is obvious why the metal is not in demand right now. The strong uptrend in stock markets are making investors see little reason to keep a safe-haven asset like gold in their portfolio.
There is also a lack of demand for safe bonds and a decline in the yield on 10-year bonds.
But this belief in stock markets seems misplaced. There is still uncertainty in the global economy, which investors are choosing to ignore. US Treasury Secretary Janet Yellen even said last week that the US could default on its debt obligations next month.
In previous years, such a warning would have caused panic around the world. But now this seems nothing as it seems that the risk of political error is growing.
In any case, the threat of inflation is increasing. On Friday, the US Department of Labor reported an annual increase in the Producer Price Index (PPI) to 8.3%. This is a new record for the index.
As long as investors are aware of the growing risks in the market, it is only a matter of time, but until then gold will remain dormant