If you believe that the march of dollars into stocks, junk bonds, the euro, etc. is somehow the result of the ongoing liquidity tidal wave, then it would make sense that gold would rally as well
Last year, when the dollar/stocks inverse trade was on to full effect, this was the case. Gold rallied when stocks would rally. Gold would sell off on days when stocks would sell off, and the dollar would be strong.
But that’s been deteriorating for a while, and one loser has been gold. Stocks are riding an impressive streak, but the precious metal has been going nowhere fast.
Sure it bounced off its early February lows but the move has been unimpressive as of late — again, especially compared to what’s going on in the other market.
The best answer we can come up with is that the nature of this rally is different. This is a risk rally, and in a risk rally there’s no good reason for gold to rally along with riskier assets, particularly given its reputation as a safe-haven store of wealth. Until investors get nervous again, this is probably dead money.