One factor holding the metal back, he said, are some of the recent losses in other markets, such as equities and other commodities.

FORBES: Gold Strong In Euro Terms But Faces Offsetting Factors Against Dollar

However, the stronger dollar has been less of a bearish factor for gold recently, as the yellow metal has seen better safe-haven demand surface as the new year is under way.

FORBES: Comex Gold Ends Modestly Higher Amid Weaker U.S. Dollar Index, Technical Buying

The market place is also more stable so far this week, which is also a bullish factor for the gold market as the yellow metal is acting like a risk asset recently.

FORBES: Comex Gold Gets Boost From Coordinated Central Bank Move to Boost Liquidity