Gold and Miner Stocks Hold Firm As AI Tech Stocks Selloff Keeps Going
As the Democrats won big in the U.S. midterm elections, investors decided to keep selling off AI tech and semiconductor stocks, which is extending the U.S. market losses from before the midterm itself. Gold and miner stocks, however, have bounced slightly so far.
The AI tech and semiconductor selloffs take yet another ugly turn. After they kept going lower pre-midterm elections in the U.S., they bounced back a little bit yesterday, before they go lower again today. Big tech names like GOOG (Alphabet) and NVDA (Nvidia) are also getting crushed.
Meanwhile, gold and miner stocks have rebounded a little bit despite also having a lot of downward pressure pre-midterm elections. Gold regained the $4,088 level per troy ounce after the end of New York trading sessions today, while VanEck gold mining ETF, GDX, ended above $85 today. This is quite contrast compared to semiconductor stocks which mostly have been going lower today.
While the AI tech stocks have been going lower due to investors' paranoia about how the Democrats might limit the AI data centers growth, gold has been showing much more confidence.
It is, however, remains to be seen whether gold and the broader precious metal markets, can keep rebounding, amid inflation pressure worldwide (and the U.S.-Iran war).
Related assets: Gold, Silver, Palladium, Platinum