(Kitco News) - Gold prices no longer look attractive based on the way the yellow metal has reacted to recent economic events, this according to John LaForge, head of Real Asset Strategy at Wells Fargo.
In the last few weeks, "you see the days when stocks really get hit, and what does gold do? Gold is up $3, it's up $5, it's up $7. ...I think this gold super cycle -- this long cycle with commodity prices -- is kind of in the dull period," LaForge told Kitco News.
LaForge noted that gold's complacent reaction to the volatility the markets have experienced is uncharacteristic of a safe-haven asset, adding that there are "better" defensive asset alternatives for investors.
"If you want to get defensive, you're almost better off in other defensive assets, too; so the dollar versus gold, if you see volatility. Gold's just not acting that well, frankly," he said.
Since January, the U.S. dollar index, DXY, has trended upward, climbing almost 3%, while gold prices have stayed relatively unchanged year to date.
LaForge said that cryptocurrencies may not be to blame for gold's lackluster performance, as digital coins are still a relatively new asset.
On price forecasts, LaForge maintained his $1,300 an ounce target, saying that the range would be expected to be between $1,250 to $1,350 an ounce.
"I'd say now, though, your bias is probably to the downside. I'm not changing the target. I'm still at the $1,300 target, but I'd say if there's bias, it is to the downside," he said.
It all comes down to the fact that "there's just no interest left in [gold]," LaForge said.