Macquarie Research gave three reasons why gold prices are not at $2,000/oz yet.

First and most obviously, a bull rally takes time. We started from a very low base, at just below $1,050/oz as recently as last December.

Second, gold is priced in the U.S. dollar, and the dollar has become stronger. Since September 2011, while gold has fallen about 30%, the British pound also lost 19%, the euro 21%, the yen 25%. “What this means is that the gold price measured in those currencies are far nearer to that 2011 peak than measured in US dollar”, wrote analyst Matthew Turner.

Third and most importantly, the physical demand for gold is lower.