Gold Demand Steady Despite AI Boom, Co-Packaged Optics Offer New Source
The World Gold Council reports that gold demand in the technology sector has remained steady at 323 tonnes for 2025, despite the growth of artificial intelligence. This is because high gold prices have encouraged manufacturers to use less metal or remove it from products.
Gold is used in advanced chips, connectors, sensors, and communications equipment due to its ability to conduct electricity well and resist corrosion. However, advances in manufacturing have allowed smaller components to be made with less gold, offsetting the growth in AI chip production.
The Council sees a potential new source of demand emerging with co-packaged optics, an emerging technology designed to improve data transfer in AI data centres. If adopted widely, it could become a small but meaningful additional source of gold demand within the sector.