Is demand for “safe-haven” gold correlated with equity market volatility (VIX)?
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2 Answers
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In my experience, safe-haven gold purchases rise when VIX jumps; correlation is imperfect, strongest during turmoil, weaker in calm markets.
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Gold often behaves like a safety valve when stocks get choppy, but it's not a perfect one-to-one with VIX. In my trading/logs, spikes in VIX often coincide with demand for safe assets, and gold tends to hold up or rise during big risk-off moves. Yet there are plenty of moments when VIX jumps and gold does little or even weakens, rates, dollar strength, or liquidity squeezes can mute the move. The practical takeaway: treat VIX as a risk-off compass, not a guaranteed signal for gold. If VIX rockets and the dollar is weak while real yields fall, gold looks attractive; if the dollar rallies and yields rise, gold can stall or dip despite high VIX.
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