Royal Gold May Rally After Nasdaq Drops 2.1% in AI-Driven Selloff
Equity markets faced broad AI-driven selloff last week, with the Nasdaq Composite dropping 2.1% and S&P 500 down 1.4%, boosting demand for safe-haven assets such as gold. Royal Gold investors await Friday's PCE inflation report for cues on Federal Reserve policy that could lift bullion prices.
1. AI-Driven Equity Selloff
Last week’s markets saw a steep AI-related selloff that pushed the Nasdaq Composite down 2.1% and trimmed the S&P 500 by 1.4% over five sessions. The selloff spread from software names into financial services, retail and logistics, creating a broad-based equity downturn.
2. Gold’s Safe-Haven Appeal
As technology and cyclical stocks faced pressure, investors rotated toward traditional safe havens. Gold prices ticked higher on the flight to safety, enhancing the appeal of royalty-focused miners like Royal Gold.
3. Upcoming PCE Report Impact
Friday’s Personal Consumption Expenditures inflation report will offer fresh data on consumer spending and price trends in December. Any signs of persistent inflation could reinforce expectations of higher interest rates, potentially supporting gold valuations and Royal Gold’s cash flows.