Gold Prices Plummet as AI-Fueled Tech Sector Surges
Gold prices fell for the fifth consecutive week, closing at their lowest level since July. The precious metal dropped by 1.8% from last Friday's price to around $4268 per troy ounce in Dollar terms. Silver also reversed its earlier bounce, extending a 3.0% weekly drop to 5.3% below $63.50.
The Nasdaq 100 index of US tech stocks rose by 2.9% from last Friday, but still traded below Tuesday's fresh all-time high. The strong performance of the tech sector was driven by artificial intelligence investment, which saw robust growth in business spending on equipment amid an AI infrastructure buildout.
US data released this week pointed to continued economic growth, with new home sales and jobless benefit claims showing unexpected strength. Durable Goods Orders numbers for August also showed a 14.1% rise in manufacturers' new orders for non-defense capital goods excluding aircraft, the sharpest growth since 2021's post-Covid-lockdowns re-opening.