It’s fair to ask why havens haven’t rallied as shares slumped.

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.

gold-rally-1-300x169 The Reason Why Gold Hasn't Rallied as Stocks Sold Off

One possible reason is that ETF investors might be selling gold to offset their stock-market losses, according to a note by Commerzbank AG analysts including Eugen Weinberg.

It’s not the first time gold has struggled during the acute phase of a sell-off — 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 basis, turning higher in later phases of a downturn while all else continues to slide.

gold-rally-2-300x169 The Reason Why Gold Hasn't Rallied as Stocks Sold Off



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