It's fair to ask why havens aren't rallying amid the stock selloff. Gold, for example, is down this week and exchange-traded funds backed by the metal saw heavy selling, with holdings declining the most since July.
One possible reason is that ETF investors might be selling gold to offset their stock market losses.
It's not for the first time gold has struggled during the acute phase of a selloff - the metal also fell during the 2008 crash, probably as investors scurried to cover margin calls. Yet bullion's haven appeal is evident in its outperformance on a relative bases, as it turns higher in later phases while everything else continues to slide.
Source: Bloomberg Pro Terminal
Jr Trader Alexander Kumanov
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