Gold Slides Toward Three-Month Low
Gold prices fell toward $4,000 an ounce on Friday, approaching their lowest levels in nearly three months as a deepening selloff in technology and artificial intelligence stocks prompted traders to liquidate precious metals to cover losses in other assets. The broader equity downturn intensified this week after Meta Platforms’ plans to increase capital expenditure reignited concerns that technology companies may take on additional debt to fund the AI buildout. Gold also remained under pressure from rising oil prices, which heightened inflation concerns and strengthened expectations that interest rates could stay elevated for longer. However, growing doubts about the sustainability of AI investments, a key driver of US economic growth, prompted markets to scale back expectations for further Federal Reserve rate hikes, potentially providing some support for precious metals.
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Gold prices fell toward $4,000 an ounce on Friday, approaching their lowest levels in nearly three months as a deepening selloff in technology and artificial intelligence stocks prompted traders to liquidate precious metals to cover losses in other assets. The broader equity downturn intensified this week after Meta Platforms’ plans to increase capital expenditure reignited concerns that technology companies may take on additional debt to fund the AI buildout. Gold also remained under pressure from rising oil prices, which heightened inflation concerns and strengthened expectations that interest rates could stay elevated for longer.
However, growing doubts about the sustainability of AI investments, a key driver of US economic growth, prompted markets to scale back expectations for further Federal Reserve rate hikes, potentially providing some support for precious metals.