
Gold prices fell on Friday, nearing their lowest levels in nearly three months, as a massive sell-off in technology stocks and inflation concerns fueled by rising oil prices weighed on demand.
Gold was trading at $4,015.63 an ounce, down $9.19, or 0.23 percent, by 06:30 GMT. The precious metal has fallen 6.08 percent over the past month and 2.36 percent over the past year.
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 about the cost of AI investments intensified after Meta Platforms outlined plans to increase capital spending, raising fears that tech companies could take on additional debt to fund their expansion.
Rising oil prices also put pressure on gold by raising concerns about inflation and reinforcing expectations that interest rates could remain high for longer.
Higher interest rates typically reduce the appeal of gold, which pays no interest, compared to interest-bearing assets.
However, uncertainty over the sustainability of investments in artificial intelligence, a key contributor to US economic growth, prompted markets to lower expectations for further Federal Reserve interest rate hikes, providing some support for precious metals.