Gold Royalty Plunges 20.09% Amid Geopolitical Tensions

On June 16, 2025, Gold Royalty experienced a significant drop of 20.09% in pre-market trading, reflecting a sharp decline in investor sentiment.

Geopolitical tensions, particularly the escalating conflict between Israel and Iran, have created a climate of uncertainty. The declaration of a state of war and subsequent military actions have heightened concerns about further escalation and potential retaliation. This geopolitical instability has led to a broader market reaction, with investors seeking safe-haven assets like gold.

Gold, traditionally a safe-haven asset, has seen increased demand due to these geopolitical risks. The Chinese central bank's continued purchase of gold reserves has further bolstered the metal's appeal, as it seeks to diversify its holdings and hedge against potential economic uncertainties. This trend is likely to continue as long as geopolitical tensions persist.

Additionally, the recent fall in US Treasury yields and moderate inflation data have contributed to gold's attractiveness. Investors are increasingly turning to gold as a hedge against inflation and economic volatility, driving up its price. This shift in investor sentiment is likely to support gold prices in the near term, despite the recent drop in Gold Royalty's stock price.