For investors comfortable with the notion that the market will continue to advance on the back of an improving economy, there is less of an argument for gold. Under that scenario, volatility is likely to remain low while rates will probably creep higher. Lower volatility and higher rates will both be headwinds for the precious metal. However, for those worried about excess complacency and rising volatility, it is worth remembering that gold generally works best in a portfolio when you need it the most.