As stocks sold off nearly 8 percent since hitting an all-time high on Sept. 19, gold prices have hardly reacted, rising just 2 percent in that time period. That's a big disappointment to those using gold to hedge against stocks—so much so that some traders view the muted move as a reason to sell the precious metal.
"We bought it a couple of weeks ago as kind of a protection play on the market, because we just felt volatility creeping back into the market," Brian Stutland said Thursday of CNBC's "Futures Now." "But with the weakness, you should have had a bigger rally in gold. It kind of, actually, to put it bluntly, sucks that it didn't go higher."
In fact, Stutland is now looking to sell his fresh gold holding.
"You have to start to consider taking that back off the table, because we should have gotten a bigger pop," he said.
Jim Iuorio blames the small reaction on the U.S. dollar, which has been strong over the past few months. As the value of the dollar rises, gold prices tend to drop, given that it consequently takes fewer dollars to buy the same amount of gold.
"The dollar strength has pummeled the price of gold—it's as simple as that," Iuorio said. "Right now, it's dead in the water unless the euro can start rallying against the dollar."
"Take it off, or get short, whatever you want," Iuorio added.
To hedge one's portfolio against stocks, Stutland now recommends looking past gold to a long volatility or long Treasury bond position.
"You've got to look to other areas for protection," he said.