Gold Falls Below $4,000 for First Time Since July

KUWAIT CITY, Oct 23: Gold prices fell below $4,000 an ounce for the first time since July 2026 as a selloff in technology stocks and rising oil prices intensified inflation concerns, weighing on demand for the precious metal.

Gold traded at $3,998 an ounce, down 0.5% as of 1600 GMT. The metal has lost 6.3% over the past month and 2.63% over the past year.

Silver prices also declined, falling 0.75% to $54.20 an ounce.

The drop came as losses in technology and artificial intelligence (AI) 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, fuelling fears that technology companies could take on additional debt to finance their expansion.

Rising oil prices added pressure on gold by heightening inflation concerns and reinforcing expectations that interest rates could remain elevated for longer.

Higher interest rates typically reduce gold's appeal because the metal does not pay interest, making interest-bearing assets relatively more attractive to investors.

However, uncertainty over the sustainability of AI investment, which has been a key contributor to US economic growth, prompted markets to scale back expectations of further Federal Reserve rate increases, providing some support to precious metals.

Market movements are likely to remain sensitive to developments in oil prices, inflation expectations, technology-sector investment and the US Federal Reserve's interest-rate outlook.