The key facts

  • Gold at $4,015.63 per ounce, down 0.23%; down 6.08% over the month and 2.36% over the year
  • The selloff in tech and AI stocks forced investors to sell the metal to cover losses
  • Rising oil prices boosted inflation expectations and rates; uncertainty over AI investments partially supported gold

Gold at a three-month low

On Friday, gold traded at $4,015.63 per ounce, down $9.19, or 0.23%, as of 06:30 GMT, Anadolu reports. The price approached its lowest levels in nearly three months: over the past month the metal fell 6.08%, and over the year — 2.36%.

Tech stock selloff pressures the metal

The decline came against the backdrop of losses in technology stocks and artificial intelligence companies' shares: investors sold precious metals to offset losses in other parts of their portfolios. Concerns about the cost of AI investments intensified after Meta Platforms announced plans to increase capital expenditures — the market is worried that technology companies may take on more debt to finance expansion.

Oil, rates, and support from the Fed

Rising oil prices also weighed on gold, amplifying inflation concerns and strengthening expectations that interest rates would remain higher for longer. Higher rates typically reduce the appeal of gold, which yields no interest income, compared with income-generating assets. At the same time, uncertainty surrounding the sustainability of AI investments — a significant driver of US economic growth — led markets to scale back expectations of further Fed rate hikes, providing some support to the metal.