Gold's Chance of Acting as a Haven Is No Better Than a Coin Flip
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When markets melted down this week and volatility in equities surged, gold did exactly what it’s not supposed to do: it moved along with everything else, betraying its role as a haven.
To see how the metal failed to live up to its reputation as a safety asset, take a look at this chart. This shows an increasing correlation between the measure of U.S. equity market turbulence, the Chicago Board Options Exchange Volatility Index, or VIX, and the Gold VIX, which measures swings for bullion.