Although gold has historically performed well during past Septembers, the precious metal faces an uphill battle against several key macroeconomic factors, said Frank Holmes, CEO of U.S. Global Investors.
"It all has to do with real interest rates and the concern that rates will continue to rise," Holmes told Kitco News.
Physical gold benefits from tailwinds, especially from India this time of the year.
However, Holmes expects the dollar to appreciate even further, adding more pressure on gold.
"I'm really amazed that the dollar isn't higher and that gold isn't lower," he said.
On gold stocks, Holmes said that the sector is relatively undervalued compared to the broad market.
"Many of the gold stocks look like a screaming buy compared to the S&P 500," he said.
This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.