Gold prices edged lower on Friday, approaching their lowest levels in nearly three months, as a selloff in technology stocks and inflation concerns fuelled by rising oil prices weighed on demand. Gold traded at 4,015.63 dollars an ounce, down 9.19 dollars, or 0.23 percent, as of 0630 GMT, Anadolu reported. Bullion was trading around 4,025 dollars in early Asian trade after falling almost 3 percent in the previous session to its lowest close in more than three months, Reuters reported.
The decline came as losses in technology and artificial intelligence stocks prompted investors to sell precious metals to cover losses elsewhere in their portfolios. Concerns over the cost of AI investment intensified after Meta Platforms outlined plans to increase capital expenditure, raising fears that technology companies could take on additional debt to finance their expansion.
Rising oil prices also pressured gold by heightening inflation concerns and reinforcing expectations that interest rates could remain elevated for longer, which reduces the appeal of a metal that pays no interest. At the same time, uncertainty over the sustainability of AI investment prompted markets to pare back expectations for further Federal Reserve rate increases, offering some support. Silver was down 0.1 percent at 54.49 dollars an ounce in the Reuters snapshot, while platinum dipped 0.2 percent and palladium was steady. In the site market tables, silver is 53.88 dollars, down 1.61 percent on the day and 5.46 percent on the week, a larger fall than gold that is consistent with liquidation rather than a change in industrial demand alone.